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Common questions about Schedule F (1040) in Lacerte

SOLVEDby IntuitLacerte Tax5Updated 1 month ago

Below, you'll find answers to frequently asked questions about Schedule F (1040) in Lacerte.

Table of contents:

How do I enter preproductive expenses for Schedule F/Form 4835?
How do I override depreciation/amortization for Schedule F/Form 4835?
How do I get car and truck expenses to flow to line 10?
To verify where expenses are being reported
To force the standard mileage rate or actual expenses
How does Lacerte calculate depreciation and section 179 expense for line 14?
To override current-year depreciation on a single asset
How do I enter benefit programs for line 15?
How do I enter labor hired for line 22?
How do I report lease payments on line 24a?
How do I mark the "All investment at risk" checkbox on Schedule F, line 36?
How does the program calculate self-employment income?
How do I generate Form 4835 instead of Schedule F?

How do I enter preproductive expenses for Schedule F/Form 4835?

  1. Open Screen 19, Farm Income (Sch. F/4835).
  2. If the taxpayer has more than one Schedule F, click the activity in the Schedule list.
  3. In the Section list, click Farm Expenses.
  4. Press CTRL+E on Other Expenses (Ctrl+E).
  5. Enter the description and full amount of preproductive expenses. Include any preproductive period expenses that were capitalized.
  6. In Capitalized Preproductive Period Expenses, enter the preproductive period expenses that the taxpayer capitalized.

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How do I override depreciation/amortization for Schedule F/Form 4835?

  1. Open Screen 19, Farm Income (Sch. F/4835).
  2. In the Schedule list, click the farm or farm rental activity.
  3. In the Section list, click Depreciation & Amortization.
  4. Enter an amount in Depreciation: Regular Tax [O] to override the calculation of depreciation from Form 4562.
  5. Enter an amount in Amortization: Federal [O] to override the calculation of amortization from Form 4562.

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How do I get car and truck expenses to flow to line 10?

You can enter vehicle expenses on the depreciation screen and link them to this Schedule F. 

If you're deducting actual expenses, rather than the standard mileage rate, the depreciation portion is reported on line 14, and lease payments will flow to line 24a.

To verify where expenses are being reported:

  1. Click on WKS: Vehicle Expenses.
  2. Scroll down to the Vehicle Expense Allocation.

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To force the standard mileage rate or actual expenses:

  1. Select the vehicle on Screen 22, Depreciation.
  2. Scroll down to the Automobiles and Other Listed Property section.
  3. Under Automobile Mileage, enter a 1 or 2 in 1=force actual expenses, 2=force standard mileage rate.

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How does Lacerte calculate depreciation and section 179 expense for line 14?

When you have multiple assets linked to the same Sch F, the fastest way to review their depreciation is on the current year Federal Depreciation Schedule the program produces.

To override current-year depreciation on a single asset:

  1. Go to Screen 22, Depreciation.
  2. Select the applicable Asset from the left of the screen.
  3. Locate the Asset Information section.
  4. Scroll down to the Regular Depreciation subsection.
  5. Enter the override in Current depreciation/amortization [O].
    • If you overrode the total depreciation on the Schedule F screen, this field won't do anything. Only use on override.

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How do I enter benefit programs for line 15?

  1. Go to Screen 19, Farm Income (Sch F, 4835).
  2. Scroll down to the Farm Expenses section.
  3. Enter the applicable amount in Employee benefit programs.
 

The amount you enter in Employee benefit programs will be reduced by any amount entered in Health insurance premiums reduction for Form 8941 credit before it prints on the return, per form instructions.

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How do I enter labor hired for line 22?

  1. Go to Screen 19, Farm Income (Sch F, 4835).
  2. Scroll down to the Farm Expenses section.
  3. Enter the applicable amount in Labor hired.
    • The amount you enter in this field will be reduced by the total amount of employer credits entered on the Schedule F and on Screen 34, General Business & Vehicle Credits. If you want to override the reduction, you can override the employment credits on Screen 19, Farm Income (Sch F, 4835), under Farm Expenses, in the Employment credits (enter as positive) [O] field.

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How do I report lease payments on line 24a?

  1. Go to Screen 22, Depreciation.
  2. Scroll down to the Automobiles and Other Listed Property section.
  3. Locate the Actual Vehicle Expenses subsection.
  4. Enter the lease payments in Vehicle rent or lease payments.
    • Make sure that the Vehicle rent or lease payments is greater than the Inclusion amount (enter as positive). If that's already the case, and result still isn't showing on Schedule F, line 24a, the vehicle is most likely taking the standard mileage rate. To report the lease payment expense separately, you must force actual expenses by using the 1=force actual expenses, 2= force standard mileage rate field on Screen 22, Depreciation.

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How do I mark the "All investment at risk" checkbox on Schedule F, line 36?

The program won't check either box under Schedule F, line 36 unless there's a loss on the Schedule F. The text under Schedule F, line 34 says that you shouldn't complete line 36 when there's a profit.

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How does the program calculate self-employment income?

  • The program calculates net farm income based on the entries on the Farm Income (Sch. F/4835) and the Passthrough K-1's Screens. You can adjust the total farm income in Farm: Net Income [A] (Screen 45). Enter an increase as a positive number and a decrease as a negative number.
  • The program calculates nonfarm income based on the entries on the Miscellaneous Income, Business Income (Sch. C), and Passthrough K-1's screens. You can adjust the total nonfarm income in Nonfarm: Net Income [A] (Screen 45). Enter an increase as a positive number, a decrease as a negative number.
  • If income from Schedule C should not be considered self-employment income, select the Not Subject to Self-Employment Tax check box (Screen 16).

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How do I generate Form 4835 instead of Schedule F?

  1. Go to Screen 19, Farm Income (Sch F, 4835).
  2. Locate the General Information section.
  3. Mark the checkbox labeled Farm rental (Form 4835).

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