Claiming loss on Form 4835

[Greta]

Farmer moved to renting out his pasture, still has expenses that produced a loss. I checked the At Risk box. Why is it going to Form 8582 denying the loss? His AGI is only 63K.

[sjrcpa]

It's treating it as a passive activity, and not rental real estate with active participation.

Does it actually belong on 4835?

Or Schedule E?

[BobKamman]

Form 4835 goes to Schedule E.  But you have to check the box that says he is at risk.

OK, you said you did that.  But the 4835 also says, "You may have to complete Form 8582 to determine your deductible loss, regardless of which box you checked."

[Greta]

I did check the At Risk box. I've done many of these farm rental 4835 forms in the past, and it's never turned a loss into PAL. What else could I have done wrong here?

[BobKamman]

Are there other losses on the return from other activities?  

[Greta]

Precisely. Form 8582 shows the entire loss to be passive and not deductible.

[Greta]

No other losses in the return.

Perhaps I should return him to Sch F?

[sjrcpa]

My point was  - if it's pure rent doesn't it belong on Sch E?

4835 is for crop (and livestock as I recently learned) share.