Instructions For Schedule F (Page 4 of 20) in pdf

Where to

sults from redemption of the commodity because you previous-

Form

report

ly reported the CCC loan proceeds as income. You are treated

as repurchasing the commodity for the amount of the loan re-

1099-PATR

Line 3a

. . . . . . . . . . . . . . . . . . . . . . .

payment. However, if you didn't report the CCC loan proceeds

1099-A

Line 5b

. . . . . . . . . . . . . . . . . . . . . . . . .

under the election, you must report the market gain on line 4b.

1099-MISC for crop insurance

Line 6a

. . . . . . . . . . . .

1099-G or CCC-1099-G

Lines 5a Through 5c

for disaster payments

Line 6a

. . . . . . . . . . . . .

for other agricultural program payments

Line 4a

. .

Commodity Credit Corporation (CCC) loans. In most ca-

ses, you don't report CCC loan proceeds as income. However,

if you pledge part or all of your production to secure a CCC

You may receive Form 1099-MISC for other types of in-

loan, you can elect to report the loan proceeds as income in the

come. In this case, report it on whichever line best describes

year you receive them. If you make this election (or made the

the income. For example, if you receive a Form 1099-MISC for

election in a prior year), report loan proceeds you received in

custom farming work, include this amount on line 7.

2016 on line 5a. Attach a statement to your return showing the

Lines 3a and 3b

details of the loan(s). See chapter 3 of Pub. 225.

Forfeited CCC loans. Include the full amount forfeited on

If you received distributions from a cooperative in 2016, you

line 5b, even if you reported the loan proceeds as income. This

should receive a Form 1099-PATR. On line 3a, show your total

amount may be reported to you on Form 1099-A.

distributions from cooperatives. This includes patronage divi-

If you didn't elect to report the loan proceeds as income, al-

dends, nonpatronage distributions, per-unit retain allocations,

so include the forfeited amount on line 5c.

and redemptions of nonqualified written notices of allocation

and per-unit retain certificates.

If you did elect to report the loan proceeds as income, you

generally will not have an entry on line 5c. But if the amount

Show patronage dividends received in cash and the dollar

forfeited is different from your basis in the commodity, you

amount of qualified written notices of allocation. If you re-

may have an entry on line 5c.

ceived property as patronage dividends, report the fair market

See chapter 3 of Pub. 225 for details on the tax consequen-

value of the property as income. Include cash advances re-

ces of electing to report CCC loan proceeds as income or for-

ceived from a marketing cooperative. If you received per-unit

feiting CCC loans.

retains in cash, show the amount of cash. If you received quali-

fied per-unit retain certificates, show the stated dollar amount

If you received a CCC loan in 2016, your farm losses may

of the certificates.

be reduced. See

Excess farm loss rules

in Line 35, later, for

more details.

Don't include as income on line 3b patronage dividends

from buying personal or family items, capital assets, or depre-

Lines 6a Through 6d

ciable assets. Enter these amounts on line 3a only. Because you

don't report patronage dividends from these items as income,

In most cases, you must report crop insurance proceeds in the

you must subtract the amount of the dividend from the cost or

year you receive them. Federal crop disaster payments are

other basis of these items.

treated as crop insurance proceeds. However, if 2016 was the

year of damage, you can elect to include certain proceeds in in-

Lines 4a and 4b

come for 2017. To make this election, check the box on line 6c

and attach a statement to your return. See chapter 3 of Pub. 225

Enter on line 4a the total of the following amounts.

for a description of the proceeds for which an election can be

Price loss coverage payments.

made and for what you must include in your statement.

Agriculture risk coverage payments.

Market gain from the repayment of a secured Commodity

If you elect to defer any eligible crop insurance proceeds,

Credit Corporation (CCC) loan for less than the original loan

you must defer all such crop insurance proceeds (including fed-

amount.

eral crop disaster payments) from a single trade or business.

Diversion payments.

Enter on line 6a the total crop insurance proceeds you re-

Cost-share payments (sight drafts).

ceived in 2016, even if you elect to include them in income for

Payments in the form of materials (such as fertilizer or

2017.

lime) or services (such as grading or building dams).

Enter on line 6b the taxable amount of the proceeds you re-

ceived in 2016. Don't include proceeds you elect to include in

These amounts are government payments you received and are

income for 2017.

usually reported to you on Form 1099-G. You may also receive

Form CCC-1099-G from the Department of Agriculture show-

Enter on line 6d the amount, if any, of crop insurance pro-

ing the amounts and types of payments made to you.

ceeds you received in 2015 and elected to include in income

for 2016.

On line 4b, report only the taxable amount. For example,

don't report the market gain shown on Form CCC-1099-G on

line 4b if you elected to report CCC loan proceeds as income in

the year received (see

Lines 5a Through 5c

next). No gain re-

F-4

Instructions For Schedule F Page 4

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