The farmland was originally owned by my grandfather who put half in trust and half went to Dad. It was farmed by (or rented by) a distant cousin. Dad died in mid November 2018. We are in the process of working through the escrow and selling the farm to the cousin who farmed it. I live in Minnesota, Dad lived in Iowa, the farm is in Kansas.
I am at the question about making money in another state. One of the reasons to select yes is "Owning or inheriting a farm", which would be the only one that might apply to me. Do I need to say "Yes" here or would that be more for next year's taxes?
I am sorry about your dad.
Generally, inherited property (including cash, stocks, and real estate) is not taxable or reportable on a personal 1040 federal return. However, if you inherit property that produces income such as interest, dividends, or rents, that income is taxable and reportable on your return.
If you are operating the farm, that is a different story.
If you have other questions about this, ask in the comment section below.
Thanks Cindy. I knew that income would eventually end up on my taxes. The question is really, does the farm need to be reported _yet_. Dad died late in the year. I'm not sure any income was received between his death and the end of the year. The farm is (or at least was at the end of the year) in escrow or something because my mother's name was still on the title. She died several years ago.
So I guess the question is, do I need to dig to see if there was any income in that last month of the year (I think Dad received payments annually) even if my share of the farm wasn't really in my name yet?