Does a farmer who cash rents a farm need to issue a 1099-misc to the landlord for rent paid over $600? Farmer is either a sole proprietor or LLC and files a Schedule C. While on this topic, does this same farmer need to issue a 1099-misc to a laborer that farmer paid over $600 to?
-
-
Trade or business, Schedule C, yes is required to issue Forms 1099 &/or W-2s. -
Agree with Lion
I always tell the farmers they are better off having the W-9 filled in upfront or prior to issuing the first rent check. This avoids some unpleasantries down the road when they attempt to have a W-9 filled out and the landowner didn't think that money was going to be taxable (who knew???). Also, I had to explain to my farmers that in most cases, they have to put the farm laborers on the payroll. Unless someone is contracting themselves out to multiple farms as a "business" (they have their own general liability insurance, etc.), in most cases they are an employee and need to be issued a W-2, and the appropriate taxes need to be withheld and matched (SS and MR).Comment
-
What about filing a Sch F?
What about filing a Sch F?Comment
-
Well, you said he was a farmer. Does he farm?Comment
-
Yes, he farms
Yes he farms but rents the land he farms via paying cash rent. The Landlord is a client of mine who rents to her cousin and 2014 was the first year therefore I may obtain the farmer as a client which brings me to another question, would the Farmer file a Sch F? I looked at the Sch F and unlike the Sch C, I could locate not a question regarding 1099's.Originally posted by Burke View PostLast edited by AZ-Tax; 12-09-2014, 01:31 PM.Comment
-
Yes, the farmer needs to issue a 1099MISC (box 1 rents) to the landowner.Comment
-
As well as any Laborer paid over $600, that is if they are not employees suppose to be on payroll.
ChrisComment
-
IMO, he files a Schedule F. And forms 1099 where necessary. The question might not be on there, but I don't think that changes the rules. The rent he pays would be a deduction on Sche F.Originally posted by AZ-Tax View PostComment
-
Schedule F
My clients file a Schedule F as part of their 1065 Partnership return. In 2013, at the top of the Schedule F, block F asks "Did you make any payments in 2013 that would require you to File Form(s) 1099?" Block G asks "If "Yes," did you or will you file required Forms 1099?"
Again, you will want to mention to the farmer about making sure any farm help who works for their farm should be put on payroll unless they hire themselves out to other farms and carry their own general liability insurance/worker's comp insurance.
Good luck!Comment
Comment