In TT, is farmland rented on fixed rate per acre Schedule E income or Farm rental income, and where to enter expense

[loyal-but---user]

Dear TT Experts,

Re TT 2025 Premier,

1. For the TT "Source of 1099-MISC Income" screen, is farmland rented to a farmer on fixed price per acre basis

- the Line 1 Rental income... (Schedule E)

or

- the Line 3 Farm Rental Income

2. When the short 1099-MISC Guided section is Done, where and how to enter expenses that improved the land?

Thank you so much!

[DianeW777]

If you entered the 1099-MISC select Line 1, Rental Income (Schedule E as opposed to Form 4835), you can continue entering expenses using the information below.

• Income reported on Form 4835 includes crop or livestock shares converted to cash, crop insurance proceeds, federal disaster proceeds, CCC loans, and agricultural program payments.
• Net taxable income or loss from the business is calculated by deducting total expenses from total income reported on Schedule E.
  • Where do I enter rental income and  expenses?

[loyal-but---user]

Hi DianeW777,

1. I noticed that clicking Line 1 Schedule E income lowers refund by $600+ from clicking 3. Farm rental income. Why is that? Am I better off picking Form 4836 Farm Rental Income?

2. Even clicking Line 1 Schedule E income, I do not get a screen to enter expenses improving the access roads for the renter farmer. Where must I go to enter the cost of the expenses?

Thank you so much!

[DianeW777]

Of course, use the instructions to enter your expenses for the farmland rental. The expenses should be entered in the rental of the farm land. Follow the steps to enter your expenses.

1. Wages & Income > Scroll to Rental Properties and Royalties (Sch E) > Review or Update
2. Edit beside the rental property > Scroll to select Add expense or asset > Select any and all expenses you need
3. Continue > Scroll to select each expense and entering your dollar amount for each

@loyal-but---user