Taxpayer has 1099G for box 6 taxable grant. I want to put on Sch F to take deductions. No way to do that with other income. What is the correct way to claim this?

Forum|Forum|1 year ago
April 10, 2025
2 replies
10 views

Taxpayer had expenses in planting seed, trees, fertilizer, property taxes, purchase of tractor and plow, paid help to plant. How can this be deducted from the income of taxable grant unless we list on a Schedule F?

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Best answer by sjrcpa

Skip the 1099-G input section. Enter directly on Schedule F.

sjrcpaAnswer

Level 15

Skip the 1099-G input section. Enter directly on Schedule F.

The more I know the more I don’t know.

G

GotaxesAuthor

Level 3

Thank you to all for input. My issue with taking loss on Schedule F was that this is not an actual farm that is producing crops, etc. This is just farmland that is being planted with trees, plants, etc. "back to nature" as client put it. He received grant to do this and not actually farm for crops/profit.

qbteachmt

Level 15

"My issue with taking loss"

You seem to be explaining that there are expenses related to the same operation that resulted in that income. That's the point, isn't it? It isn't a grant of fun money. It's a grant for purposes of a specific activity. They had to apply for it. It's being offset by what they did with it.

Is this a USDA conservation grant? Most conservation grants are taxable. Read this topic to see if it helps:

https://www.calt.iastate.edu/article/tax-rules-implementing-conservation-or-climate-smart-practices

Don't yell at us; we're volunteers

qbteachmt

Level 15

It's no different than operating income.

Don't yell at us; we're volunteers

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