John911 Posted July 13, 2023 Report Share Posted July 13, 2023 I have the farm statement all completed but because the main source of income is not farming I am unable to get the software to only claim the $17,500 loss for each partner? How do we get this done Quote Link to comment Share on other sites More sharing options...
Geo123 Posted July 13, 2023 Report Share Posted July 13, 2023 Hello John911, If farm losses exceed $32,500 and the farmer is part-time, only $17,500 can be claimed as a farm loss against income for the year. If farm losses are less than $32,500, a formula must be used to determine the loss that can be claimed. In the Interview >> Self-employment income T2042C - Farming income (cash basis) + T2042 - Farming income (accrual basis) + Was farming the main source of income +? < - - - SELECT “+” (When farming is not the main source of income, all farming losses are restricted. A restricted farm loss occurs when farming is not your main source of income.) Indicate that farming was not the main source of income? Yes < - - - -YES = THAT IS WAS NOT >>T2042 : Your net income (loss) : Amount 5C minus line 9945 (enter this amount on line 14100 of your income tax and benefit return) [9946 ] [$amount] >>Worksheet (Federal) Line 14100 – Calculation of net farming loss Farming loss for the year [$amount] a $2,500 plus the lesser of: (i)1/2 ($loss amount) -2,500.00) [$amount] (ii) b [$amount] Deductible Farming Loss (lesser of lines a and b) [$amount] c Restricted Farm Loss to carry forward (line a minus line c) [$amount] d Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.