Montana Form Frm - Montana Farm And Ranch Risk Management Account - 2016 Page 2
Download a blank fillable Montana Form Frm - Montana Farm And Ranch Risk Management Account - 2016 in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Montana Form Frm - Montana Farm And Ranch Risk Management Account - 2016 with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2Form FRM Instructions
An individual or a family farm corporation that has an
Distributions
eligible agricultural business may establish a Montana
•
Any deposits that are distributed within six months of
farm and ranch risk management trust account. Deposits
the date of your deposit are income in the year that
made into this account can be subtracted from their
you reported the associated deduction. Depending
adjusted gross income. However, the amount excludable
on the timing of the deposit and related distribution,
from adjusted gross income depends on the business’ net
you may need to file an amended return to report the
income and cannot exceed $20,000.
distribution.
Eligible agricultural businesses are ones that produce food,
•
Your deposits must be distributed within three years.
feed and fiber commodities and/or raise, grow or produce
The amounts not distributed within this timeframe are
any of the following for commercial purposes: livestock,
considered to have been distributed on the last day of
poultry, bees, biological control insects, fruits, vegetables
the third year. This distribution is taxable income, and
and crops (sod, ornamental, nursery, horticultural). Eligible
a penalty equal to 10% of the tax due on this amount
agricultural business also refers to silviculture and the
should be added to the tax on the distribution.
raising of domestic animals and wildlife in domestication or
•
If at any time within the three-year period you become
a captive environment.
disqualified because you are not engaged in an eligible
Account Information
agricultural business, the entire balance in the trust
Grantor name and identification number. Provide the
account is considered to be distributed and must be
legal name and tax identification number of the grantor of
included in your adjusted gross income in the tax
the farm and ranch risk management trust. If the grantor
year you became disqualified. This distribution should
is a family farm corporation, provide the name of the
be reported as an addition to federal adjusted gross
corporation as it is registered with the Montana Secretary of
income on Schedule I of the Montana Form 2.
State.
Questions? Please call us toll free at (866) 859-2254 (in
Trustee. Provide the name and address of the financial
Helena, 444-6900).
institution designated as trustee.
Account number. Provide the account number assigned to
the trust by the trustee.
Deposits
•
List the date and amount of each deposit that you
made for the specific tax year.
•
You can make your deposits during the tax year or
within 3½ months after the close of the tax year.
•
Your deposits per year cannot exceed the lesser of
20% of your net income attributable to agricultural
business, or $20,000.
Deduction
•
Net income attributable to agricultural business is the
total net farm income that you reported on your federal
Schedule F, net farm rental income that you reported
on your federal Form 4835 or the gain from the sale
of draft, breeding, dairy or sporting livestock that you
reported on your federal Form 4797.
•
If your deduction is for a family farm corporation, you
may only report the amount of net income attributable
to agricultural business allocated to you based on your
distributive share of the income from the entity.
•
Your deduction per year cannot exceed the lesser of
20% of your net income attributable to agricultural
business, or $20,000.
•
Because deposits may not exceed the deduction to
adjusted gross income allowed for that tax year, there
is no carryover provision.
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial