How to access Form 4835 in Drake Tax

Form 4835 is used to rental income and expenses from crop and livestock shares for some taxpayers. For more information, see the Form 4835 Instructions.

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 to make necessary entries.

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 the loss is handled, look for a Form 8582 Passive Activity Loss Limitations and the associated worksheets Wks 8582* (where * is the worksheet number).

1041

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

1065

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

1120-S

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