TAXMAN Posted January 24, 2012 Report Share Posted January 24, 2012 What I have here is: Dad an active farmer all his life is now 100% confined to house due to age and other medical reasons. Has medical care in home as he is unable to care for himself. Daughter who also farmed all her life with dad keeps farm going. Sells his cows and hers, pays all expenses. Dads account to pay his, hers to pay hers. I really do not see how I can reasonably keep his schedule F alive. More like a sharecropper. Dad owns all the land and buildings and some equipment left on depreciation. They(dtr) do not want to file a 1065. Would you file the Schedule F and limit the loss to that of income since Dad cannot actively farm? What other suggestions might you have? Thanks for all the help. :scratch_head: Quote Link to comment Share on other sites More sharing options...
jainen Posted January 24, 2012 Report Share Posted January 24, 2012 >>Dad cannot actively farm<< According to Pub 925, "You materially participated in a trade or business activity for a tax year if you... materially participated in the activity for any 5 (whether or not consecutive) of the 10 immediately preceding tax years." Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted January 24, 2012 Report Share Posted January 24, 2012 Jainen is right that one of the seven tests for material participation is past participation. But depending on how long he has been unable to actively participate, if his daughter has been doing all of the work for the last six years he might consider filing a Farm Rental schedule, form 4835. I would at least read the insttructions for that farm if it has been several years since he was able to actively participate and see if that meets the situation. Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted January 25, 2012 Author Report Share Posted January 25, 2012 Thanks Kinda of the way I was leaning but 2nd opinions always help. Quote Link to comment Share on other sites More sharing options...
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