JoeB

The detail for Box 7 includes amounts for Livestock Forage Program, Price Loss Coverage and Market Gains. The amount shown in Box 7 for Market Gains is exact, to the penny, to the amount shown in Box 9 - Market Gain. Client records aren't detailed but do know loans were not included in income previously.

Farmer taxpayer receives Form CCC-1099-G with amounts in Box 7 (Total Ag Payments) and Box 9 (Market Gain). The amount in Box 9 (Market Gains) is also included in the total in Box 7. Presumably, the Box 9 Market Gain is not taxable since it is already included in Total Ag Payments? Surprisingly, first year this taxpayer has ever had a Market Gain. Thanks!

That is my understanding as well. Just wanted to clarify as it appeared some of the posters may have confused excess farm loss with an NOL generated by farming activities. Essentially, excess farm losses are is treated similar to a non-business capital loss that carries over annually, not to exceed a $3,000 loss.

Saw this old thread and wanted to help clarify. As I understand, an "ordinary" farm loss from Schedule F goes on Form 1040, page 1 and, if it creates an NOL after offsetting any other income, must be carried back 5 years and forward for 20. On the other hand, if an "excess farm loss" exists (Farm losses capped at $300,000 if receiving applicable subsidies), this excess loss is carried forward to the subsequent tax year and treated as a deduction from that year. In the case of an excess farm loss, how does the group reflect the excess farm loss on the return for the subsequent year? Great topic!