Taxable grant box 6 of 1099-G

[jmbillmeyer]

I have a client who received a 1099-G box 6 taxable grants. The money was from the Natural Resources Conservation Services and was for a manure storage building. I've been researching to see if any of the grant would fall under the cost sharing exclusion or any other exclusions. I am coming up with the grant needing to be included in other income and then depreciate the farm building. Has anyone else had this situation and what did you do? thanks

[Skylane]

Never had one but your approach sounds logical. Not sure if it can be linked to a sch e.

[dd4vols · Accepted solution]

I do a bunch of farmers here in Tennessee.   You are correct.  Our state has many farmer grants..some for buildings, some for  equip... even some for pay of purchase of bulls.    grant income should show up on Line 7.   (it's kind  tricky to get the 1099-G  to end up there if you enter the 1099-G) sometimes I just do a drill down schedule on that line and manually tell what the grant is.

And you have to depreciate the asset at your cost... NOT your cost less the reimbursement/grant.

[verrnie725]

I am talking about Grant Aid for school I think this is not taxable.  

[dd4vols]

@verrnie725  you should search in a different thread..this is not about education grants