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Federal input screens

Screen 4835-2 - Farm Rental - Expenses (1120)

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Overview

At-risk limitation
Enter amounts that are at-risk in the 6198 Screen.

Expenses

Conservation expenses
The application limits any positive amount you enter to 25 percent of the gross farm rental income and generates a Schedule M-1 reconciling amount for the reduction. The application converts a negative entry to positive, does not limit the entry, and does not create a Schedule M-1 adjustment.
Inclusion amount
The application transfers the amount of lease inclusion from the asset module, and subtracts the amount from the leased vehicle expenses entered in the
Rent or lease - vehicles, machinery, and equipment
 field.
Business interest expense subject to limitation
Enter the amount of business interest expense, not including floor plan financing interest expense. UltraTax CS/1120 automatically updates this field based on the amount in the
Interest
 field. If the
Section 1.163(j)-9 election was made for an excepted trade or business
 field on the 4835 Screen is left blank, UltraTax CS/1120 sums the amounts in the
Business interest expense subject to limitation
 fields and transfers the total to Form 8990, line 1.
Meals subject to 50% limit
Enter 100 percent of the expense for meals. Amounts are automatically reduced to 50 percent and a Schedule M-1 reconciling amount for the reduction is generated.
Meals
Enter 100 percent of the meals expense subject to the hours of service limitations of the Department of Transportation (DOT). The application automatically reduces this amount to 80 percent and generates a Schedule M-1 reconciling amount for the reduction.
Preproductive period expenses
The amount entered prints as a negative number with the description "263A" on the Other expenses line on the form.

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