I have a client with a farm and a retail store. He's been filing with Turbo Tax and has been filing on Sched C---can he use C or must it be F? I don't see a place for home office expenses on F. I'm not familiar with that form, does the loss work the same? Thanks for your help!
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I see now, he has a sched f and a sched c, do I need to do both prob? -
Facts and circumstances
Normally a retail store would be a C and a Farm would be an F assuming neither has been duly established as an entity of some kind. However you might get away with combining them if there is a clear relationship such as the retail store sells mainly things produced on the farm.
I believe that Sch F has the same consequences for gain or loss as Sch C.
I don't know about you but I would have some boning up to do if I needed to do a Sch F. How much of that time should be billed to the client probably depends on whether you plan to do more farms in the future.Comment
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For one thing, you need a Sch F because there are different rules for depreciation for farms and ranches as opposed to Sole Props.You have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
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During an audit of a farmer who also had a large welding business. I just combined both C & F businesses on the F.
The auditor said that I should not do this. That C stuff goes on C, that F stuff goes on F.
There was no change to the return because of the audit.
But there are different depreciation methods for C versus F assets.
There are different estimated tax payment requirements for C versus F.
So from then on, the client gets a C AND and F, and billed for two schedules instead of one and for two 4562's instead of one.Jiggers, EAComment
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