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10210: Form 4835 - Farm Rental Income and Expenses


Fed Returns Generally

How do I access Form 4835 for an individual return? Is Form 4835 available for an estate, trust, partnership, or s-corp return? 

 

1040

Form 4835 is available in an individual return for taxpayers who need to report farm rental income based on crops or livestock produced by a tenant. Use screen 4835 on the income tab to make necessary entries. Note that certain persons should not use Form 4835; see the instructions for details.  

     Loss Limitations

Passive activity rules may limit how much of a 4835 loss you can take. The Activity Type on the 4835 screen affects this.

  • A - Active rental real estate - flows to 8582, line 1 ("Active Real Estate Activities") (DEFAULT)
  • B - Other passive activity - flows to 8582, line 3 ("All Other Passive Activities")
  • C - Real estate professional - does not flow to 8582

If you do not select an entry from the Activity Type drop list, A - Active rental real estate - flows to 8582 line 1 ("Active Real Estate Activities") (DEFAULT) is selected on the form.

For an explanation of how your loss is handled, look for a Form 8582 Passive Activity Loss Limitations and the associated worksheets Wks 8582* (WK_8582* in Drake15 and prior) (where the * is the worksheet number).

1041

An estate or trust with rental income and expenses from crop and livestock shares should use Schedule E (Form 1040), Part I instead.

1065/1120S 

Partnerships or S corporations with rental income and expenses from crop and livestock shares should use Form 8825 instead.

For more information, see the Form 4835 instructions.


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