Cash rent farmland passive or nonpassive

[sdtaxman]

I have a new client, partnership that rents out farmland for a set amount and pays the taxes & insurance. When preparing the schedule k-1 the line 2 supplemental information labels it as nonpassive and I always thought that is was considered passive. I cannot seem to get it to change to passive without changing the type of rental property to commercial or something else. Did I miss something? Is cash rent on farmland no longer considered passive?

[Koss]

Rental Income

Where are you reporting the rental income and expenses?

On Form 8825?

Or on Schedule F?

Or somewhere else?

BMK

[ddoshan]

I was thinking the same as above. Also possible Sch. E would be used. All depends on the rental situation. What form you report on could make a difference.

[sdtaxman]

It is being reported on form 8825.

[ddoshan]

It is being reported on form 8825.

But does it not make a difference as to what form initially was used to report the income Sch F, Sch E, 4835, or whatever. And how you characterized the income there. Then the income or loss would be carried to form 8825 I believe.

[ddoshan]

Whoops... I guess form 8825 is what you would use initially for partnerships

[Koss]

Form 8825

It is being reported on form 8825.

And which code are you using?

I am referring to codes 1 through 8 on page 2 of Form 8825.

And which software are you using?

BMK

[sdtaxman]

Using code 5 for land. Lacerte software

[TXEA]

Land rent is nonpassive.