JaninMi
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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.
Oil Lease Income
in General Chat
Posted
Thank you for your feed back.
I would also report it on Sch E. That was my initial response to him, but then I got to over thinking it. I just was trying to save this guy some money, as the lease was for a very large amount.
Thanks again!