Farm support?

[Catherine]

Client inherited 1/3 share in deceased parents' farm.  Paperwork includes $144 paid BY USTreasury and copy is labelled "US DOA farm support" - anyone have a clue where I report this?  Or where to go looking?  Have tried IRS web site and TTB with no luck.

[Gail in Virginia]

If your client is filing a farm return (sch F) I would put it on line 4a, Agricultural Program payments.  And unless you have information that says otherwise, I would treat it as taxable income.

[rfassett]

I agree with Gail.  But I only do about 50 schedule F's - so I am no expert.

[Jack from Ohio]

Agree with Gail.  In years past, we called it "Land Bank payments."  The government has come up with some pretty creative names for it these days.  

[windmill]

Look at Form 4835 and see if this fits the situation.

[Lion EA]

I get Production Flexibility payments for not growing crops on certain parts of the IL farm that my grandfather bought in the 1880's.  Maybe $42 per year!  (I  have only a few acres; my cousins have acreage also.)  Our tax dollars at work.

[GeneInAlabama]

I remember reading years ago that Queen Elizabeth in England gets paid by our government for not growing cotton on land she owns in Louisiana.  At least we aren't giving her food stamps.  (I hope)

[Catherine]

It's my very FIRST Schedule F, ever!  Not many farms in Mass., and this one actually is in OK.  My first OK return, too.

[Lion EA]

I use 4835 as I have sharecroppers.  There's a line for Lime that I actually used one year.  And, cash rent on E.  I just do what my cousins tell me!