1099patr

[sunoak]

Form 1099PATR   

Where on ProSeries can you enter the  amounts in boxes 3, 7, and 8?  Spent an hour on the phone with Support and nobody knows.  This is per unit retain allocations, qualified payments and qualified items section 199(a).

[ljr]

google says report 1099-patr on other income schedule 1 and indicate 1099-patr

[sjrcpa]

If you're doing a Schedule F, there is input for it there.

[Terry53029]

Is your client shopping at co-op for business or personal. If it is personal he is only getting a discount, and no need to report the 1099PATR at all

[sunoak]

Not for boxes 3, 7, 8 on 1099patr.  the line on F is for box 1.  look at the 1099patr

[sunoak]

Business.  I know where  box 1 on the 1099patr goes  it is boxes 3, 7 and 8 I have  an issue with

[Terry53029]

What is the business entity

[The_AntiTax_Man]

@sunoak 

In this response I will assume that your client is a cash method corn farmer and that you are filing a Schedule F using Part I.

Form 1099-PATR, box 3 is the total dollar amount of corn that the farmer marketed through the coop during 2023.  The coop reports the gross amount, before grain check deductions by the coop for the corn check-off, drying fees, storage fees, etc.  The farmer will typically have entered the net amount that he received from the coop as income in his books.  So, the difference between what the farmer reported as income from the coop in his books and the amount reported on Form 1099-PATR are deductions from his gross dollars of corn marketings.

You will likely have already reported the net dollar amount of corn marketed at the coop on Schedule F, line 2 from the farmer's books.  So, you need to transfer the $ amount on Form 1099-PATR, box 3, from Schedule F, line 2 to Schedule F, line 3a/3b.

Form 1099-PATR, boxes 7 & 8 are the amounts entered into Form 1099-PATR, box 1 plus box 3.  These amounts do not get entered anywhere in ProSeries.  However, this amount is used to compute the amount that you enter in the Qualified Business Income Deduction Smart Worksheet [QBIDSW], line K 1.  You will find the QBIDWS by scrolling all the way down on the Schedule F.  Line K 1 requires an entry and will be highlighted red if you have not entered a number into it.

To compute the amount to enter onto the QBIDWS, line K 1 you need to take the amount on Form 1099-PATR, box 7, divide it by the amount on Schedule F, line 9 to get the percentage of income from the coop.  Then multiple the result by the amount of Schedule F, line 34.  This is the amount to enter onto the QBIDWS, line K 1.  If the result is negative number, then enter it onto line K 1as a negative number.

Good luck.