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income averaging farm income from a partnership

jkelsey
Level 2

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?

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Accepted Solutions
Terry53029
Level 14
Level 14

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

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4 Comments 4
Terry53029
Level 14
Level 14

Use schedule J on personal 1040

jkelsey
Level 2

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
Level 14
Level 14

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

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jkelsey
Level 2

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