I received a call from a local farmer, who leased his 900 acres of farm land. This was a oil lease for 5 years. He has
received the check. He is a long time active crop and general farmer. His question to me was could he report the
income on his Sch F?
I told him it should be reported on Sch E, rent income. But now I'm wondering if it could be reported on Sch F, I
know it would be subject to self imployment taxes, but his expenses and depreciation could reduce the income
some what.
Any advise would be appreciated. Thank you.