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How do you exclude self employment tax earning on 1065 K-1 item 14a relating to schedule F (patronage dividends).

rodmcinerney
Level 1
 
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sjrcpa
Level 15

I got that. Maybe it should be reported on the rental schedule instead of Sch F?


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sjrcpa
Level 15

If the farm income is SE income why wouldn't the patronage dividends also be?


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rodmcinerney
Level 1

All farm income is 1099-patr income with corrsponding expenses ie seed real estate taxes insurance etc. Taxpayers, partners are in late seventies and do not farm themselves. Partnership was formed as a LLC partnership.

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sjrcpa
Level 15

Did you check the box for Did not Materially Participate?

 


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rodmcinerney
Level 1

Yes, I checked did not materiallly participated.

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sjrcpa
Level 15

So who is farming this then?

Why is the only income patronage dividends?

Why do they have seed expense?


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rodmcinerney
Level 1

The farming is done by someone else on a 50/50 split of income and expenses. My clients do not farm.

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sjrcpa
Level 15

Then I question why you are reporting on Sch F. For an individual, crop sharing goes on Form 4835 and not Sch F.


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rodmcinerney
Level 1

I agree with what you are saying but this is a partnership return.

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sjrcpa
Level 15

I got that. Maybe it should be reported on the rental schedule instead of Sch F?


ex-AllStar

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