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Screen J - Schedule J - Farm Income Averaging (1040)

Fields & buttons

Enter other income considered taxable farming and fishing income, such as the Net operating loss attributable to farming or fishing included on Form 1040, Sch 1, line 8a. The amounts in this field increase or reduce the calculated total taxable income attributable to farming or fishing as shown on Schedule J Income Averaging Wrk 1.
The optimal "Elected farm income" for Schedule J - Income Averaging for Farmers and Fishermen is determined by the taxable income attributable to farming and fishing. Elected farm income is limited to the lower of the taxable income or the taxable income attributable to farming/fishing. If any of the Elected farm income fields contain data, the calculated taxable income attributable to farming/fishing is not used.
The taxable income attributable to farming or fishing is calculated using information from other screens. The calculated amount in the following table appears on Schedule J Farm Income Averaging Worksheet 1.
Taxable Income from Farming/Fishing
UltraTax CS Data Entry
Schedule F - Profit or Loss from Farming
F screen (all activities)
Wages received as Shareholder of S corp involved in farming/fishing or as a fishing crew member
W2 screen with a
Wage code
 of
3
Schedule C - Profit or Loss from Business
C screen with an activity code of
114110, Fishing
Form 4835 - Farm Rental Income and Expense
4835 screen with the
Considered farming business for income averaging
 field marked
Schedule E, Part II - Income or Loss from Partnerships and S Corporations
K1-2 screen with the
Farming activity
 and/or
Fishing activity
 fields marked
Ordinary and other income from Schedule J
J screen
Qualified Business Income Deduction
Form 8995/8995-A related to farming or fishing activities
Deductible portion of self-employment tax
Schedule SE for farming and fishing activities
Deduction for Capital Construction Fund
OtherTax screen
Net ordinary gain or loss from sale of farming business property
Farm and fishing assets sold, K1-2 screen field, and InstPY screen in the Personal Sale folder
Short-term and Long-term capital gains
B&D screen indicated as farm, Sale screen, K1-2 screen fields, and InstPY screen in the Personal Sale folder
Enter the elected farm income amounts that differ from the calculated total taxable income attributable to farming/fishing. The application uses these amounts (instead of the calculated taxable income attributable to farming/fishing) to determine the portion that creates the lowest tax using Schedule J, Farm Income Averaging.
Mark this field to use the amounts entered as elected farm income
in their entirety
 to calculate Schedule J, Farm Income Averaging, and to not optimize the amounts.
Enter
X
 in this field to use the Schedule J tax calculation, regardless of the default tax optimization. Schedule J and related worksheet will print.
Enter
X
 to suppress the printing and calculation of Schedule J and to calculate the income tax using one of the other methods.

Prior Year Information section

These amounts are required to calculate the current-year tax using Farm Income Averaging. Enter filing statuses for prior years if they are different from the current year. These fields default to the next following-year's filing status if the
Filing status
 field is blank.
Enter the capital loss adjustment
from the base year
 if there is a loss on line 21 of the base year Schedule D forms. Line 2 of the Taxable Income Worksheets on Schedule J Worksheet 1 defaults to this amount. Enter this adjustment only if the taxable income for the base year is a negative amount.
For more information on this adjustment, see the Schedule J instructions. Line 2 of the Taxable Income Worksheets on Schedule J Worksheets 1 defaults to this amount. Enter this adjustment only if the taxable income for the base year is a negative amount.
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