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Screen 4835 - Farm Rental - Income (1065)

Overview

Use this screen to enter general farm information and income if the partnership is a landowner or sub-lessor of the farm. The net farm rental income (loss) transfers from the Farm Rental Income and Expenses Worksheet to Form 8825.

General Questions

Enter the state ZIP Code (or select one from the dropdown list) for the state in which the farm rental is located. The state ZIP Code lets certain state-specific applications to determine in-state and out-of-state income.
Select the type of property or enter the other type of property in
Other (specify)
 for Form 8825 and Schedule K-1, box 2. If you leave
Type of property
 blank, the type of property defaults to 8 – Land – Farm Rental.
Participation isn't determined at the partnership level. However, to answer
Did you actively participate in the operation of this farm during the tax year
 on the Farm Rental Income and Expenses Worksheet, enter
1
 for Yes or
2
 for No.
Enter
X
 if this activity is an excepted trade or business per page 2 of the Form 8990 instructions and therefore
should not be included
 in the Form 8990 calculation. If this activity isn't an exception to the section 163(j) limitation and should be included in Form 8990 the leave this field blank.
Enter
X
 to delete this unit on next year’s proforma and to indicate this activity is disposed in the statement for Schedule K-1, box 2, Net rental real estate income (loss).

Income

If you enter an amount in
total
, the application automatically enters the same amount in
taxable
. Enter a different amount in
taxable
, including
0
 (zero), if the entire amount isn't taxable.
Use the statement to enter information for the Commodity Credit Corporation loans reported under election. If you enter
X
 in
Elect to include CCC loans in income
, the application automatically prints an IRC section 77(a) tax election for this farm rental with information from this field.
Enter
X
 to elect to include CCC loans in income. The tax election automatically prints with the return with the information entered in the statement for
CCC loans reported under election
. If you electronically file the return, the application includes the tax election in the electronic file.
Use the statement to enter information for an election to defer crop insurance proceeds to next year. The tax election automatically prints with the return and is included in the electronic file.
The application automatically calculates the net gain or loss from the sale of farm rental property included as ordinary income on Form 4797. Enter an amount, including
0
 (zero) to override the calculated amount. The application reports this amount on Form 8825, line 19 and subtracts this amount from the gain or loss transferred from Form 4797 to Form 1065, Page 1, line 6.
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