199A Farm Land Rental Income - Spidell

199A Farm Land Rental Income

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Message Board 199A Farm Land Rental Income

This topic contains 1 reply, has 2 voices, and was last updated by Sandy Weiner 8 months, 3 weeks ago.

  • Author
  • #131264
    Michael Zoradi

    Farm land is rented. Owner pays property tax. Helps with certain improvements concerning wells. Owner is member of various agriculture and water rights groups. Owner does not farm the property.

    I recall discussions with in the estate tax area, that farm land needed to be rented pursuant to a “sharecrop” agreement in order to be considered a “trade or business” to receive a benefit for estate tax valuation.

    The owner is a Sub S. Will the farm land retail be a trade or business for 199A?

  • #131329
    Sandy Weiner

    Unfortunately, there is no simple answer to this question…..at this stage it is a facts and circumstances analysis. There’s a great article on farm rentals and the IRC Sec. 199A deduction that you might want to take a look at: https://www.calt.iastate.edu/blogpost/despite-guidance-lots-questions-remain-regarding-rental-income