We harvest timber on a 10-15 year cycle. We have not had income or expenses on the farm since we started using Turbo Tax 4 years ago although we have filed a farm schedule in previous years. We often have farm expenses a few years in advance of our income. When I entered the expenses these are not showing in the "bottom line"? Will these expenses be counted against our income in future years? Should I be entering something differently?
Thanks!
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The most likely reason this year's losses are not transferring to your tax return (Form 1040, Line 18) is that you haven't indicated your investment is "at risk".
If that is the case, update the Special
Situations in the Final Details section of Your Farming Income and Expenses.
The next screen (Other Situations) will let you change your answer to the
"at risk" question (do not check that box). The term "at risk" means that there is a possibility, however slight, that you could lose your investment (e.g. foreclosure, tree disease)
You should also update the Farm Information interview to indicate you "Materially Participate".
See the attached sample screenshots and update this post with a comment if these steps do not resolve your issue.
The most likely reason this year's losses are not transferring to your tax return (Form 1040, Line 18) is that you haven't indicated your investment is "at risk".
If that is the case, update the Special
Situations in the Final Details section of Your Farming Income and Expenses.
The next screen (Other Situations) will let you change your answer to the
"at risk" question (do not check that box). The term "at risk" means that there is a possibility, however slight, that you could lose your investment (e.g. foreclosure, tree disease)
You should also update the Farm Information interview to indicate you "Materially Participate".
See the attached sample screenshots and update this post with a comment if these steps do not resolve your issue.
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