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.
Unless they are farming Money, it seems they made some investment income on the borrowed funds, and that is called "playing the float."
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.
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