Fillable Form 4835 - Farm Rental Income And Expenses

Form 4835 (2013)

Page

General Instructions

but maintained the farm as a rental business, you each

can file a separate Form 4835 to report your share of farm

Future developments. For the latest information about

rental income based on crops or livestock produced by

developments related to Form 4835 and its instructions,

the tenant. If you and your spouse did materially

such as legislation enacted after they were published, go

participate (for self-employment tax purposes) in the

operation or management of the farm, you each must file

a separate Schedule F (Form 1040). For an explanation of

Purpose of Form

“material participation,” see the instructions for Schedule

If you were the landowner (or sub-lessor) and did not

C (Form 1040), line G. For more information on qualified

materially participate (for self-employment tax purposes)

joint ventures, go to IRS.gov and enter “qualified joint

in the operation or management of the farm, use Form

venture” in the search box.

4835 to report farm rental income based on crops or

Additional information. See the Instructions for

livestock produced by the tenant. See chapter 12 in Pub.

Schedule F (Form 1040) and Pub. 225 for more

225, Farmer’s Tax Guide, for the definition of material

information.

participation for landlords.

Specific Instructions

Use this form only if the activity was a rental activity for

purposes of the passive activity loss limitations. See the

Employer ID number (EIN). You need an EIN only if you

Instructions for Form 8582, Passive Activity Loss

had a qualified retirement plan or were required to file an

Limitations, for the definition of “rental activity.”

employment, excise, estate, trust, partnership, or alcohol,

If you have net income on line 32, your tax may be less

tobacco, and firearms tax return. If you need an EIN, see

if you figure it using Schedule J (Form 1040).

the Instructions for Form SS-4.

Do not use Form 4835 if you were a/an:

Line A. Generally, you are considered to actively

participate if you participated in making management

• Tenant—instead use Schedule F (Form 1040) to report

decisions or arranging for others to provide services

farm income and expenses;

(such as repairs) in a significant and bona fide sense.

• Landowner (or sub-lessor) and materially participated in

Management decisions that are relevant in this context

the operation or management of the farm—instead use

include approving new tenants, deciding on rental terms,

Schedule F (Form 1040) to report farm income and

approving capital or repair expenditures, and other similar

expenses;

decisions. You do not, however, actively participate if at

• Landowner (or sub-lessor) and received cash rent for

any time during the year your interest (including your

pasture or farmland based on a flat charge—instead

spouse’s interest) in the activity was less than 10% (by

report as income on Schedule E (Form 1040), Part I;

value) of all interests in the activity.

• Estate or trust with rental income and expenses from crop

Part I. Gross Farm Rental Income—Based on

and livestock shares—instead report on Schedule E (Form

Production

1040), Part I; or

Line 1. Report income you received from livestock,

• Partnership or S corporation with rental income and

produce, grains, and other crops based on production.

expenses from crop and livestock shares—instead report

Under both the cash and the accrual methods of

on Form 8825.

accounting, you must report livestock or crop share

Qualified joint ventures. If you and your spouse each

rentals received in the year you convert them into money

materially participated as the only members of a jointly

or its equivalent.

owned and operated farm rental business, and you filed a

Lines 2a and 2b. Enter on line 2a your total distributions

joint return for the tax year, you can make an election to

from cooperatives as shown on Form 1099-PATR, Taxable

be taxed as a qualified joint venture instead of a

Distributions Received From Cooperatives. On line 2b report

partnership. This election in most cases will not increase

the taxable amount. See the instructions for Schedule F

the total tax owed on the joint return, but it does give

(Form 1040), lines 3a and 3b.

each of you credit for social security earnings on which

retirement benefits are based and for Medicare coverage

without filing a partnership return.

If you and your spouse make the election and you did

not materially participate (for self-employment tax

purposes) in the operation or management of the farm,

Form 4835 - Farm Rental Income And Expenses - 2013 Page 3

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