income averaging farm income from a partnership

[jkelsey]

I have partners of a partnership that had a large increase in net revenue from schedule F this year. I'm not aware of anyway to average the income from a K-1 when it gets to the personal return. Does anyone have any advice on this?

[Terry53029]

Use schedule J on personal 1040

[jkelsey]

I've used the form before, just never to average income from a schedule K-1 but you've prompted me to review further. I jumped the gun asking but thank you for answering.

[Terry53029 · Accepted solution]

Income average can be used by flow through entities and individuals involved in farming and fishing. Here is link: https://www.irs.gov/instructions/i1040sj

Also: https://www.law.cornell.edu/cfr/text/26/1.1301-1

[jkelsey]

Thank you. This was helpful and I used the Schedule J for planning for these clients.