TurboTax Business 2023: Farm Business Question

[pmbblblaw]

TurboTax Business 2023 keeps asking me about a farm business, including about farm business income and expenses.  But my sub-S corporation does not have a farm business, and I never said that the corporation had a farm business. How to get rid of those annoying and recurring farm business questions. 

[ThomasM125]

You may have a schedule F in your return in error that would report farm income. I suggest you use the Forms icon on your menu bar to bring up the forms in your computer and if you see a schedule F you can click on the form in the list and there will be an option to delete it at the bottom of the screen.

[pmbblblaw]

Thanks for your response. So, I checked, and Schedule F is not listed among the forms for my Sub S corp return. I checked online and noticed similar past posts.  Please see below. I cannot readily find a fix for this problem. Seems like a program error which TT never fixed (??). 

beolein

Level 2

Solution here for program asking for farm income when you don't own a farm doesn't work

The solution everywhere in previous years about it asking for farm income when you don’t have a farm doesn’t work.  That solution says delete Form F and its worksheet.  I do that, even though Form F is not in "My Forms" and nothing has been entered there.  But I am still asked about my 1099-NEC for my independent contractor business, for which I’ve already entered the code completely unrelated to farming.  The question asked is “Did you receive income for this farm reported to you  on Form 1099-NEC?”

Compuski1

Level 3

This is so frustrating!  This is about the third year I have run into this.  I don't have farm income but Turbotax keeps asking me to add it.  There is no schedule F shown, so I can't delete it.  I have unchecked the box that says "Do you have farm income" but it doesn't "stick" - it keeps asking me.  Aarrrgh!

‎January 10, 2022 9:34 PM

[pmbblblaw]

Never did get an answer to my question in this thread: TurboTax Business 2023 keeps asking me about a farm business, including about farm business income and expenses.  But my sub-S corporation does not have a farm business, and I never said that the corporation had a farm business. How to get rid of those annoying and recurring farm business questions. 

Further, I checked to see if I could delete a farm income form, and Schedule F (the farm income schedule form) is not listed among the forms for my Sub S corp return. Seems like his is a TT program error.

Anyone have any ideas? 

[PatriciaV]

It would be helpful to have a TurboTax ".tax2023" file to test further.

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose File >> Share.)

1. Choose Send Tax File to Agent.
2. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear. 
3. Reply to this thread with your Token number and tag (@) the Expert requesting the token from you. Please include any States that are part of your return. 

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

[pmbblblaw]

Thank you.  What do I need to do to eliminate personal information in the TT tax file before sending to the Agent?

Also, I had a separate question which I posted yesterday (and previously) concerning Form 8949. This also seems to involve a TT program error (unless I am not understanding something). Would you be able to look at that question as well?

Thanks. 

[pmbblblaw]

Further to my immediate prior post, I checked online and see that sending a tax file to a Turbotax agent does not include personal data. So I just sent the tax file and my token # is 1210332.  Would appreciate your assistance on both of my questions, as indicated in my prior posts (i.e., re farm income and re: form 8949). Thank you. 

[PatriciaV]

Thank you for the token. We will take a look and respond if we have a resolution.
@pmbblblaw 

[PatriciaV]

The tax file retrieved by token #1210332 is for a Trust/Estate. You mentioned an S-Corp earlier. Please obtain a new token from the S-Corp return in TurboTax Business.

@pmbblblaw 

[pmbblblaw]

I thought I sent the correct return. Perhaps not. I just sent the s-corp return again. Token 1214076.  

Please advise both as to the farm income problem and the other problem concerning form 8949. Thank you.

[PatriciaV]

Due to the redaction of personal information, it's unclear what you entered for type of business and product/service under Business Info >> About Your Business. You may need to revisit this section to be sure you checked the correct boxes and completed any entries. After entering valid test information in this area, the Farming Income message no longer appeared.

Two fields on Form 8949 had overrides (red boxes). This invalidates the both the TurboTax Accuracy Guarantee and the ability to e-file the return. Right-click the boxes and cancel the overrides to resolve the form errors.

@pmbblblaw 

[pmbblblaw]

Let's forget about the farm income issue for now. 

As to form 8949, the reason I did the override in those two columns, is per what I posted on March 8, as follows: 

TurboTax Business 2023: Capital Gains/Loss Worksheet (Schedule D) & Form 8949
I am using the TurboTax Business 2023 program for my Sub-S corp. My corp invests in tax
liens. One of the tax liens became worthless in 2023, so I am writing it off as worthless.
I entered that information on the TT Schedule D worksheet, Part II as a long-term capital
loss, showing a $4,351 cost (basis) and $-0- proceeds (sale price).
At the top of the Worksheet, line A1, I checked the No box, to indicate that I did not receive a
1099-B for this write-off. On Line F1, Type of Transaction, I inserted “O” for “worthless
securities.”
That then generated a checked box entry on the related form 8949, part II, line F—showing
no 1099-B. So that is ok.
Also, form 8949, Part II, line 1 columns a-e and h are all ok, showing correct information for
holding period, basis and proceeds.
BUT, on that same line, columns f and g are (automatically by TT) incorrectly completed. To
my understanding, those two columns are supposed to apply only if there is an adjustment to
gain or loss. I do not have any such adjustment and I did not anywhere indicate that I have
any adjustment to my basic $4,351 long term capital loss due to the worthless security (the
lien).
In column f, code letter E is inserted by the TT program. That should not be there, because,
as noted, there is no adjustment in my situation. Moreover, code E only applies if one has
received a 1099-B or 1099-S. As noted above, I did not receive either such form, as I so
indicated on line A1 of the Capital Gains/Loss (Sched. D) Worksheet.
Also, Column G is demanding that I insert an amount, to show the amount of the adjustment.
(If not, I get an "error" when I do my TT fed tax review.) But, as noted, there is no adjustment,
and I did not (to my knowledge) anywhere indicate that there should be an adjustment to my
capital loss amount.

Am I doing something wrong, or is this a TT program glitch?

i would like to get this resolved ASAP, as I need to file the return!

[JamesG1]

Not sure what is happening.

In TurboTax Business, reporting an Scorp tax return, I entered a worthless security with 'various' as date acquired and 'worthless' as date sold.  I selected 'worthless securities' as Type of sale.

The entry is reported on IRS form 8949 Sales and Other Dispositions of Capital Assets under Part I and no adjustment entries are reported in columns (f) and (g).

This treatment is using the nonbusiness bad debt rules which show the debt as a short term capital gain.  See IRS Publication 334 Tax Guide for Small Business, page 31 here.

Nonbusiness bad debts

All other bad debts are nonbusiness bad debts and are deductible as short-term capital losses on Form 8949 and Schedule D (Form 1040).

@pmbblblaw