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- FARM INTEREST INCOME
FARM INTEREST INCOME
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Alatax
Level 2
03-24-2022
12:32 PM
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I have a client that built poultry house $1.2 m, the bank that financed the construction. would put the draws in a interest earning checking account.. He drew $6000 in interest., but also paid $65000 in interest.
This should not be considered as investment income and report on schedule B, I think it should be farm income. If reported on schedule B he losses his EIC. any suggestions.
They IRS is not allowing him to count as income on schedule F.
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qbteachmt
Level 15
03-24-2022
12:49 PM
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Unless they are farming Money, it seems they made some investment income on the borrowed funds, and that is called "playing the float."
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Don't yell at us; we're volunteers
IRonMaN
Level 15
03-24-2022
01:03 PM
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I hear the money crop was a good one last year. Just plant those pennies, add a little fertilizer, add a little water here and there and then watch your money grow.
As a side note, if the farmer doesn’t want to report the interest as investment income, send the interest to me and I will happily report it that way.
Slava Ukraini!
