Where do I enter 1099-PATR taxable distributions received from a cooperative if I do not have farm income?

[AndreaC1]

What kind of co-op was it? Or are there dividends in Box 1 that come from purchase of property for personal use (or capital assets/depreciable property used in business)?

[jkgardner827]

It was from the purchase of property (land and our home). It was definitely for our personal use. It was not used in a business and we are not involved in farming. We simply used this company, Capital Farm Credit, to finance the purchase of acreage on which to build our home.

[IreneS · Accepted solution]

Most often, Form 1099-PATR reports dividends associated with farms. However, you may also receive this form for other reasons, for example if you have your home mortgage from a land bank.

In general, the dividend that was reported to you on Form 1099-PATR can be entered on Schedule B using the following steps:

1. Click on Federal > Wages & Income. 
2. Scroll down to the Interest and Dividends section and click on the Start/Revisit box next to Dividends on 1099-DIV.
3. Answer Yes to Did you receive any dividend income? (even though it was not reported on a 1099-DIV)
4. On the next screen, click on I'll type it in myself.
5. Enter the dividend information and continue through the rest of the interview.

There are situations were the 1099-PATR does not have to be entered.  If the dividends in Box 1 of your 1099-PATR came from property purchased for personal use (or capital assets or depreciable property used in your business), you do not have to enter your 1099-PATR. Keep it with your tax records, though.

[kgreenwood1243]

Did you find the answer to this? I'm in the same situation with purchase of our home/property from AgSouth.

[CatinaT1]

This will explain, based on your situation, where it is entered. Where do I enter Form 1099-PATR?

[TaxesRtaxing]

We have a similar situation; we received a 1099-PATR form from AgSouth Farm Credit (for the March 2023 "patronage refund" check associated with our 50-acre land loan.)  We have no operating farm or other business with AgSouth; only the land mortgage. I've spent hours trying to figure out if the amount on the 1099-PATR (box 1) needs to be reported on our income tax return. Did you (or anyone else) find anything definitive? I'm 90% certain we don't need to report it, but I'd like to be 100% sure. Thanks!

[PatriciaV]

If the dividends in box 1 of your 1099-PATR came from property purchased for personal use (or capital assets or depreciable property used in your business), you don't have to enter your 1099-PATR. Keep it with your tax records, though.

Read more here: Where do I enter Form 1099-PATR?

@TaxesRtaxing