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Nano21
New Member

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

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

TomK2023
Expert Alumni

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

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]

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