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Federal input screens

Screen F - Farm (1040)

Overview

Use this screen to enter the Schedule F general farm information and all farm income if the taxpayer or spouse operates a farm. Note that if the farm entered in this unit of the F screen is jointly owned and the qualified joint venture rules are met (see the IRS instructions for Schedule F), the taxpayer and spouse need to file a separate Schedule F with their share of income and expenses. Total farm income transfers to Form 1040, Page 1, Farm Income.
Use the State allocation spreadsheet for UltraTax CS/1040 multi-state processing for the F screen. Enter all multi-state data at the federal level via the State allocation spreadsheet for each unit of a single entity.
With the State allocation spreadsheet, individual allocation percentages and allocated net income amounts, in total, are not required to foot with the federal amount, so individual state's law differences can be conveniently taken into consideration.
For more information, refer to Processing multiple-state returns.
Auto and Home Office Expenses
Enter all home office and car / truck information in the asset module even if using the standard mileage method.
At-Risk Limitation
Enter amounts that are at-risk in the 6198 screen. See the overview of the 6198 screen for further information.
Source data entry
The data sharing enables you to enter data on facsimile versions of forms your clients submit for the preparation of their tax returns. Once the facsimile forms are completed, you can export the data and transfer it into your client data files via the data sharing feature. For more information including a list of available facsimiles, refer to the UltraTax CS Source Data Entry overview.

Schedule F - General Questions

Enter information in this section to complete the top part of Schedule F and to classify income and expenses.
UltraTax CS automatically enters the next available number in this field. You can replace this number, but you can't leave the field blank. This information is used to get and coordinate information for the business unit activity. For example, these fields enable UltraTax CS to link information (such as income or loss, sales, credits, and asset detail) for the at-risk and passive calculations.
The description entered in this field is used as the unit description. This field is mandatory.
If you are processing a state return, enter the 2-character postal code for the state to which this unit belongs. This code is used by the various state applications to help determine in-state and out-of-state amounts.
Use the St CO screen to enter the percentage of federal net income or the amount of net income attributable to a specific state for Schedules C, E, F, and Form 4835 activities. This screen is also used to enter state-specific (California, Hawaii, Kentucky, Massachusetts, Montana, New York, and Wisconsin only) passive (regular and AMT) and section 179 carryover information (including Alabama and New Hampshire) for Schedules C, E, F, and Form 4835 activities. Information entered in this screen automatically transfers to the state for use in state-specific calculations. For more information, access the input screen help for the state by pressing F1 from within a state input screen.
Refer to State fields in UltraTax CS/1040 for more information.
Enter the accounting method in this field. If left blank, UltraTax CS defaults to the cash method of accounting.
Press F4 to choose from a dropdown list of agricultural activity codes. The activity code description will be displayed in the F screen.
This question defaults to Yes on the return. Enter
2
 if the client didn’t materially participate in the operation of the farm.
If the taxpayer made any payments during the year that would require them to file any Forms 1099 for this activity, enter
1
 for Yes. If no payments were made that require filing Forms 1099, enter
2
 for No. See the General Instructions for Certain Information Returns, issued by the IRS, to find a chart showing which Forms 1099 need filing. Separate specific instructions for each Form 1099 are also available from the IRS.
This field is available for data entry if a
1
 for Yes is entered in the
Payments were made that require filing Form(s) 1099
 field. Enter
1
 for Yes in this field if the taxpayer has or will file all Forms 1099 required to file for the activity. Enter
2
 for No if the taxpayer won’t be filing the required Forms 1099.
Farm income is automatically included in the calculation of self-employment tax. If you don’t want this activity's income included in the calculation, enter
X
 in this field.
UltraTax CS assumes that the income from a Schedule F activity is not included in net investment income for Form 8960 unless the following is true.
  • The F screen field
    Exclude farm income from self employment tax
     is
    X
  • The F screen field
    Was there material participation in the operation of this business this year?
     is
    2
  • The F-3 screen field
    Passive activity code
     is
    1
Enter a code in this field to assign the net investment income treatment for this activity if it is different from the default treatment. Enter
1
 if the income from this trade or business should be included in the calculation of net investment income on Form 8960. Enter
2
 if the income should not be included.
Enter an
X
 in this field if this activity received a subsidy that would make the taxpayer's farming business subject to the excess farm loss limitation rules (IRC code 461(j)). See the instructions for this form and the Schedule F for more information on the excess farm loss limitation and which subsidies apply.
For Schedule F activities with a loss in the current year, marking this checkbox will mark the
Yes
 checkbox for the “Did you receive an applicable subsidy” question on Schedule F, page 1. If this checkbox is not marked, the
No
 checkbox will be marked for the “Did you receive an applicable subsidy” question on Schedule F, page 1.
Enter the amount of nonspecified health insurance premiums paid with the insurance plan established or considered to be established with this activity. However, if specified premiums were obtained via the Health Insurance Marketplace see the notes section below. UltraTax CS automatically calculates the self-employed health insurance deduction for Page 1 of the 1040 (or 1040NR) return.
  • If the taxpayer’s insurance plan for this activity was not obtained via the Health Insurance Marketplace – that is, the premiums paid for health insurance coverage for this business were paid for coverage in a plan that is not a qualified health plan (that is, all premiums paid are considered nonspecified premiums) – UltraTax CS calculates the SE health insurance deduction using the Self-Employed Health Insurance Deduction Worksheet, which is based on the worksheet in IRS Publication 535, Business Expenses. Any amount not allowed as a Page 1 deduction automatically transfers to Schedule A as a medical deduction.
  • If the taxpayer’s insurance plan for this activity was obtained via the Health Insurance Marketplace, complete the 1095A screen in the Health Care folder for the premiums reported on Form 1095-A, and enter
    X
     in the
    Apply to SE Health Ins
     field for all applicable months.
  • If the taxpayer has specified premiums and is claiming the premium tax credit, UltraTax CS produces the PTC Worksheets W, X, Simplified Calculation, Y and Z, to determine the self-employed health insurance deduction including any deduction allowed for nonspecified premiums paid in addition to specified premiums. These worksheets are based on the worksheets found in IRS Publication 974, Premium Tax Credit. As indicated in the publication, using the Simplified Calculation Method to determine the deduction and credit amounts is optional. If the taxpayer is eligible for both a self-employed health insurance deduction and PTC for the same premiums, any computation method that satisfies each set of rules may be used so long as the sum of the deduction claimed for the premiums and the calculated PTC, taking the deduction into account, is less than or equal to the premiums.
Select
1 (Yes)
 if everyone claimed on the tax return had minimum essential health care coverage for the entire year. UltraTax CS marks the checkbox on Form 1040, line 61 for Full-year coverage. Select
2 (No)
 if anyone in the family didn’t have coverage for the entire year. This field is available on the W2, 1099R, SSA-1099, C, F, K1-3, and Coverage screens. If you make a selection in this field, no selection is required in any other input screen. Details of partial coverage or exemption from coverage can be entered on the Coverage screen in the Health Care folder. If this field is blank in all locations, UltraTax CS defaults to no minimum essential coverage and sends a critical diagnosis.
Use the attached statement to enter eligible long-term care insurance premiums paid on behalf of the taxpayer, spouse, and/or dependents, paid with this Schedule F. The deduction is limited based on the age of the taxpayer, spouse, or dependents as designated by the code entered in the statement. Codes are available within the statement to identify for whom the premium was paid. UltraTax CS then verifies the age of the taxpayer or spouse from the date of birth information that you entered in the 1040 screen. For premiums paid on behalf of dependents, select code
3
,
4
,
5
,
6
, or
7
. UltraTax CS limits each entry as required. See the following limitation table.
Age
Limitation
40 or under
$390
41-50
$730
51-60
$1,460
61-70
$3,900
71 or older
$4,870
UltraTax CS applies the deductible amount to the Self-Employed Health Insurance Deduction Worksheet based on the entry in the
T, S, J
 field at the top of the F screen. If you select
J
 from the
T, S, J
 field, the deductible premium amount splits equally between the taxpayer and spouse. The Self-Employed Health Insurance Deduction Worksheet showing the deduction prints when applicable. The amount not allowed as a deduction for Page 1, line 29 of the 1040 return automatically transfers to Schedule A as a medical deduction.
The codes that are available in the
State Use
 field in the attached statement are specific to the state postal code entered in the
State
 field. If state use codes don't apply to the entered state, state use codes won’t be available.
In the statement, enter the state use code for processing the 1040 state return and the ID number for the state return selected.
Code
Description
State number
1
Form OP-424: CT
Enter the 7-digit SOS ID number
2
Form IT-204-LL: NY
State number doesn't apply
3
Form 568: CA
Enter the 7, 9, 10, 11 or 12 digit SOS file number. If no number has been assigned, enter
None
,
None 1
, and so on.
4
FAE 170: TN
Enter a Tennessee account number. If no number has been assigned, enter
None
,
None 1
, and so on.
5
Form 725: KY
Enter a Kentucky 6-digit LLC account number
7
Form 05-158: TX
Enter a 10-digit SOS file number
8
Tax identification number: HI
Enter a Hawaii general/excise use 12-digit tax identification number. Don’t include letters or dashes.
9
Form LC: KS
Enter up to a 7-digit business entity ID number. If no number has been assigned, enter
None
.
10
Qualified oil & gas activity: MI
State number doesn't apply
11
Personal service income: SC
State number doesn't apply
12
Form PPT: AL
Enter a 6-digit SOS file number
13
Form RI-1065: RI
Enter the 9-character SOS ID number
14
Form BT Summary (LLC): NH
Enter the 9-character Department Identification Number (DIN), format NL and 7 numbers
15
Form LLC Annual Report: MA
Enter the 9-digit ID number assigned by the Secretary of the Commonwealth
16
LLC Franchise Tax Report: AR
Enter the 9-digit Arkansas filing number
17
Form MTA: NY
State number doesn't apply
19
Forms PHL NPT/BIRT: PA
Enter the 7-digit Philadelphia account number
21
Schedule DE: WI
State number doesn't apply
To activate AR, CA, KS, KY, MA, NC, NH, NY, PA, TN, and TX LL/LLC returns, select
File
 /
Client properties
, select the state tab, and mark the checkbox for the form/return in the
Other return(s)
 section.
Enter the city code for the state in which the farm is located. This code is used by the various state/city applications to aid in determining in-city and out-of-city income. After you select a city code from the dropdown, UltraTax CS automatically fills out the
City name
 field.
To access the State allocation spreadsheet, the following conditions must be present in the current client.
  • The client being processed must include at least 1 state return.
  • You must be viewing Client Organizer Data Entry or Input Screen Data Entry.
  • For the 4835 and F screens, data must exist in the
    Description
     field.
  • For the C screens, data must exist in the
    Principal business
     field.
  • For the Rent screens, data must exist in the
    Property kind/location
     field.
When these conditions have been met, access the spreadsheet by selecting the
Allocation
 button in this screen.
2 methods (percentage or amount) of allocation can be used to allocate federal unit net income to the states displayed in the State allocation spreadsheet.
  • Percentage:
     Enter a percentage in XXX.XX format in the 1st field available in the State allocation spreadsheet. Select the state to which this percentage applies from the dropdown. Select the
    Apply
     button. UltraTax CS automatically calculates the amounts attributable to that state and display the amounts in the spreadsheet. The percentage entered for that particular state will appear following the state name for easy reference. If enabled, individual item amounts can be changed (replaced) on the spreadsheet from the amount calculated by UltraTax CS.
  • Amount:
     In cases where a percentage of the federal amounts does not apply, individual item amounts, if enabled, may be entered in the spreadsheet for the state. Zero (0) is a valid entry and will prevent the state amount from defaulting to the federal calculated amount. If an individual item amount field is left blank, the federal amount, if present, will be used in the state's calculation.
Build-up states that report or otherwise calculate income from these Schedules C, F, E, and Form 4835 activities on an amount by amount basis may be allocated using a percentage only, while passive carryover amounts may be allocated by entering the state-specific carryover amounts within the State allocation spreadsheet.
Other states, which are typically AGI states that require net activity amounts only, may be allocated by percentage or by entering the net amount of activity income/(allowable loss) attributable to the specific state.
The State allocation spreadsheet may be printed in a report format for future reference. Select the
Print
 or
Preview
 button in the lower portion of the spreadsheet. If licensed, you can also print to FileCabinet CS.
The income from this screen is treated as 100 percent foreign when a Form 2555 allocation code is present. If income from this activity is not 100 percent foreign earned income, enter the foreign percentage. The Form 2555 Allocation Worksheet only allocates and reports the foreign portion of this activity.
Use this field to allocate the income between U.S. and foreign earned income (reported on Form 2555). Income calculated as foreign earned during the assignment is used to calculate the Form 2555 exclusion. Foreign income earned before, during, and after the foreign assignment is reported, less any exclusion, by Form 1116 as eligible for the foreign tax credit. UltraTax CS uses this activity's allocation code to allocate any related self-employment items.
Additional information is required in the 1116, 1116CO, 2555, and 2555-2 screens to report this activity on Forms 1116 and/or 2555. Refer to the input screens for further information.
If the taxpayer is married, files a separate federal return, and resides in one of the following community property states - AZ, CA, ID, LA, NM, NV, TX, WA, or WI (or for registered domestic partners, files a Single or Head of Household federal return, and resides in CA, NV or WA) - use this field to identify whether or not the business income/loss is generated from community property. Enter a
1
 if the trade or business is community property and classified as the taxpayer's business. Enter a
2
 if the trade or business is community property and classified as the spouse's business. Enter
N
 if the trade or business is non-community property. Business activity units indicated as community property will be allocated 50/50 to the taxpayer and the spouse when 2 separate clients are created via the Filing Status Optimization tool with the Split income according to Community Property rules option enabled.
For married filing separate individuals, self-employment tax is imposed on the spouse carrying on the trade or business. Therefore, when the community property is designated as the taxpayer's business, UltraTax CS reports the net profit or loss from the spouse's identical Schedule C/C-EZ as taxable community income on Schedule SE line 3 with the literal “Comm Prop TxInc.” When the community property is designated as the spouse's business, UltraTax CS reports the net profit or loss from the spouse's Schedule C/C-EZ as exempt community income on Schedule SE line 3 with the literal “CommProp Exempt.” If the taxpayer has no other SE income, and Schedule SE is not required, the literal “Exempt Comm Prop Inc” will print on Form 1040, line 56 (or Form 1040-NR line 54).
For more information about the Filing Status Optimization utility and the option for community property returns, refer to Using the Filing Status Optimization utility (1040) and Filing Status Optimization window.
.
Enter
X
 to indicate that this Schedule F activity was not active for the current tax year. Any data in the activity's input screens and asset detail is ignored. This unit will proforma to next year. When activity resumes, clear this field.
Enter
1
 for a complete disposition of the activity. Prior-year suspended losses are released and the activity, plus any other related input screens, will be deleted during next year's proforma process. If the activity has any passive activity credit carryforwards, the activity will proforma to keep the passive credits available to use against other passive income per Form 8582-CR instructions.
Enter
2
 if this is a passive activity that was sold on an installment basis. UltraTax CS treats installment dispositions as follows:
  • UltraTax CS calculates any allowed losses for the current tax year by multiplying the overall loss by the ratio of current-year gain recognized divided by unrecognized gain as of the beginning of the tax year. Losses in excess of the allowed amount are suspended and proforma'd to the following tax year.
  • When the gain recognized in the current year exceeds all of the current and carryforward losses, all losses are allowed in the current year. Also, any other related input screens will be deleted during next year's proforma process. Any activity that is coded
    2
     with no passive-loss carryovers, plus any other related input screens, will be deleted during next year's proforma process.

Schedule F Income

Use the attached statement to enter a description and amount for income received for the activity, including from a Form 1099-K.
Schedule F has 5 different categories of income that can be reported. Use the Sales Code column to indicate which category the income is for. The 5 income categories and their corresponding lines on Schedule F are:
1
Cash sales of items bought for resale - reported on line 1 of Schedule F
2
Cash sales of items raised - reported on line 2 of Schedule F
3
Accrual sales - reported on line 37 of Schedule F
4
Custom hire - reported on line 7 (if using the cash method of accounting) or line 42 (if using the accrual method of accounting)
5
Other income - reported on line 8 (if using the cash method of accounting) or line 43 (if using the accrual method of accounting)
Federal Withholding
Note: The federal withholding entered in this field is also used for certain states that calculate a “federal tax adjustment” for a taxpayer and spouse (split return); this amount (for state allocation purposes), will go to the taxpayer or spouse based on the overall activity's T/S/J code at the top of the screen.
State Withholding
State withholding may be entered in the statement attached to this field. If state withholding is present, to indicate who was issued Form 1099-B with state withholding, also enter a T or S in the T/S/J column and the state postal code associated to the state withholding in the Withholding State column. Many states include withholding records in the state electronic file or on withholding forms, and additional information related to the withholding may be required and entered at the state level. Entering a T/S/J code or postal code here doesn’t modify the state source income for the activity. Use the Multi-state allocation spreadsheet to allocate the activity income and use the T, S, J field to indicate to whom the activity income or loss belongs.
You can enter
0
 (zero) in either of these fields, if necessary.
If you enter an amount in the
Distributions received from co-ops - total
 field, the same amount is automatically entered in the
Distributions received from co-ops - taxable
 field. You can enter a different amount in the
Distributions received from co-ops - taxable
 field, including
0
 (zero).
If you enter an amount in the
Agricultural prog pymts - total
 statement field or face field, the same amount is automatically entered in the
Agricultural prog pymts - taxable
 statement field or face field. You can enter a different amount in the
Agricultural prog pymts - taxable
 statement field or face field, including
0
 (zero).
Enter the amount of Conservation Reserve Program payments for retired or farmers with disabilities that were also included in the
Agricultural program payments - taxable
 field. The amount entered will be treated as self-employment income for SECA tax purposes if the individual receiving the payment also received Social Security retirement or disability payments. This treatment of the payments is allowed by the Heartland, Habitat, Harvest, and Horticulture Act of 2008.
In the attached statement, enter a description and amount of any CCC loans reported under election. Amounts transfer to Schedule F, line 5a (if cash) or line 40a (if accrual). A custom dropdown is available in the attached statement.
Enter
X
 in this field to elect to include CCC loans in income. The tax election will automatically print with the return. If the return is being filed electronically, the tax election will be included in the electronic file.
If you enter an amount in the
Total CCC loans forfeited
 field, the same amount is automatically entered in the
Taxable CCC loans forfeited
 field. You can enter a different amount in the
Taxable CCC loans forfeited
 field, including
0
 (zero).
If you enter an amount in the
Crop insurance proceeds received in current year - Total
 statement field or face field, the same amount is automatically entered in the
Crop insurance proceeds received in current year - Taxable
 statement field or face field. You can enter a different amount in the
Crop insurance proceeds received in current year - Taxable
 statement field or face field, including
0
 (zero).
Use the statement attached to this field to elect to defer the income from crop insurance proceeds until next year. Enter the amount of deferred proceeds from each insurance carrier in the
Amount Deferred
 column. The tax election will automatically print with the return. If the return is being filed electronically, the tax election will be included in the electronic file.
Use the statement attached to this field to elect to defer income from the sale of livestock due to weather-related conditions under Section 451(e) and Regulation 1.451.7. Enter the information required for the election as outlined in IRS Publication 225 – Farmer’s Tax Guide. The election will be used only for farm activities using the cash accounting method. The tax election will automatically print with the return. If the return is being electronically filed, the tax election will be included in the electronic file.
Use this statement to defer recognition of gain from the sale of draft, dairy, or breeding livestock due to weather-related conditions under Section 1033(e). See Internal Revenue Code Section 1033(e) for more information. The tax election will automatically print with the return. If the return is being filed electronically, the tax election will be included in the electronic file.
Use these fields to enter amounts required to complete Form 4797, Part IV, Recapture Amounts Under section 179 and 280F(b)(2) When Business Use Drops to 50% or Less. UltraTax CS reports the recapture amount as other income on Schedule F.
In the
Section 179 expense deduction allowable in prior years
 and
Sec 179 recomputed depreciation
 fields, enter amounts to calculate the section 179 recapture.
In the
Section 280F expense deduction allowable in prior years (Force)
 and
Sec 280F recomputed depreciation (Force)
 fields, enter amounts to override (force) UltraTax CS-calculated amounts, if necessary.
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