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Posted

If his income is primarily from farming, and he has not made any estimated payments or had withholding, filing by the first of March allows him to pay then with no penalty. If he has a loss, or other payments that cover him, he can file on 4/15 if he wants to.

Posted

Someone jog my memory....New client has a Schedule F with his 1040 for farming income/Loss....Is this return due on March 1?

Is not the return due on March 2 this year because March 1 is on Sunday?

Posted

The fact that he has a net loss does not necessarily mean he is not treated as a farmer, the rule is based on gross income. If 2/3 of his gross income is from farming (or fishing) he can elect to file his return by March 1 (the 2nd this year) rather than paying estimates and he will not be considered to be under-withheld. If his taxes are paid through W-2 withholding and underpayment is not an issue, he can wait and file by April 15. If underpayment is an issue, and he does not qualify as a farmer in 2008, he can also look back to 2007 and if he qualified then he would be treated as qualifying for 2008.

Posted

If underpayment is an issue, and he does not qualify as a farmer in 2008, he can also look back to 2007 and if he qualified then he would be treated as qualifying for 2008.

Good post. I did not know that. Thanks.

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