below threshhold but sold 3 cows (would go on F)---need to file?

[Super Mom]

I have a retired client who's total income is below the threshold, however part of that total is from farming activities that would be filed on Sched. F (sold 3 cows). Does she need to file?

[spanel]

I have a retired client who's total income is below the threshold, however part of that total is from farming activities that would be filed on Sched. F (sold 3 cows). Does she need to file?

Schedule F = self employment tax... Yes you need to file if over $400 in sales.

Chris

[Super Mom]

That's what I thought, thanks!!!

[TaxGuyBill]

How were the cows treated for tax purposes?

If they were sales from inventory, then as spanel said, you probably need to file Schedule F to report the Self Employment tax.

If they were assets to be reported on Form 4797, the taxpayer may not need to file if their income is below the filing threshold.


On the other hand, it could be advantageous to file to (1) close the statute of limitations in three year, and (2) reduce the chances of a crook filing false tax returns for your client.