You'll need to sign in or create an account to connect with an expert.
It depends. To clarify, is this in the State of California?
no this is not in California.
Let me explain This is my residents which is located on a stream. The nonprofit provides Hundreds of thousands of dollars in the area for ecology/ riparian/soil/ etc. I submitted a proposal which included work to be completed by a third party. This work was removal of invasive vegetation and stream bank and slope work, would replant with native plants. It just so happened that the 3rd party entity is also a nonprofit. It is a cost sharing grant over 5 years. I must pay the third party then the grant entity comes out to inspect prior to funding only 90% of what work was done. I cover 10%.
1.)I am not sure if this is all income.
This was taken from AGNR, but they strongly urge that you seek an attorney.
Cost-sharing conservation programs are one way to encourage farmers to partake in on-farm conservation efforts. Parties who utilize federal and/or state cost-share program to incorporate best management practices on leased farmland will have additional tax related considerations each year.
Generally, the payee of record (whomever signed up for the conservation program, either landowner or tenant) will receive a 1099 representing the income stemming from the cost-share funds. Typically cost-share payments will be considered income that must be reported to the IRS, however, in some cases cost-share funds used for improvements may be excluded from gross income.
IRS Code § 126 allows the exclusion of the cost-sharing payment from income if the payment is from an authorized list of programs,
Thanks for the information.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
torrenscameron
New Member
clanwin
New Member
scottkat14
New Member
stacy06168
Level 1
KR61
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.