Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

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

rodmcinerney
Level 1
 
0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
sjrcpa
Level 15

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


Ex-AllStar

View solution in original post

9 Comments 9
sjrcpa
Level 15

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


Ex-AllStar
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.

0 Cheers
sjrcpa
Level 15

Did you check the box for Did not Materially Participate?

 


Ex-AllStar
sjrcpa
Level 15

So who is farming this then?

Why is the only income patronage dividends?

Why do they have seed expense?


Ex-AllStar
rodmcinerney
Level 1

Yes, I checked did not materiallly participated.

0 Cheers
rodmcinerney
Level 1

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

0 Cheers
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.


Ex-AllStar
rodmcinerney
Level 1

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

0 Cheers
sjrcpa
Level 15

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


Ex-AllStar