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posted Feb 28, 2024 9:54:34 AM

I receive rent for my bare farmland and do not know which section to check Rental Properties (Sch E) or Farm Rental

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2 Replies
Level 15
Feb 28, 2024 10:00:57 AM
Expert Alumni
Feb 28, 2024 11:02:06 AM

The IRS considers "material participation" to be the determining factor as to which farm income tax form you should file. If you're a traditional farmer who raises crops or livestock, you're considered a self-employed business person and you would file using Schedule F, Profit or Loss From Farming.

 

Enter Farm Income (on Schedule F):

  1. Open your return.
  2. Enter farm income in the Search box.
  3. Click on jump to farm income link.

 

 

However, if you merely rent out your land to farmers and do not materially participate in the labor or management of the farming process yourself, you are considered a landowner, not a farmer, according to the IRS. Form 4835 is the way for non-participating farmland owners to report their farm income and expenses.

 

Enter Farm Rental Income:

  1. Open your return.
  2. Enter farm rental income in the Search box.
  3. Click on jump to farm rental income link.

 

 

.

 

 

Enter Rental Income (Schedule E):

  1. Open your return:
  2. Enter schedule e in the Search box.
  3. Click on jump to schedule e link.

 

@Nano21 

 

[Edited 2/28/24 | 11:05am PST]