Form 4835 - Farm Rental Income And Expenses

Form 4835 is used by individuals who receive income from the rental of farmland or who engage in farming activities as a business. It allows taxpayers to report their rental income and deductible expenses associated with the rental of farmland.

Key points about Form 4835:

  1. Farm Rental Income: This form is used to report income from renting or leasing agricultural land.

  2. Expenses: Taxpayers can deduct various expenses related to the operation of the farm, such as mortgage interest, property taxes, operating expenses, and depreciation of farm assets.

  3. Net Income or Loss: The form calculates the net income or loss from the farming activities. This amount is then transferred to the individual's Form 1040, Schedule E, or another applicable tax form.

  4. Active Participation: To use Form 4835, the taxpayer generally needs to be actively involved in the farming operation.