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Farm Income - 1099PATR and Agricultural Program Payments

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Farm Income - 1099PATR and Agricultural Program Payments

Answer

1099-PATR

If you received distributions from a cooperative in 2014, you should receive a Form 1099-PATR. On line 3a, show your total distributions from cooperatives. This includes patronage dividends, nonpatronage distributions, per-unit retain allocations, and redemptions of nonqualified written notices of allocation and per-unit retain certificates.

Show patronage dividends received in cash and the dollar amount of qualified written notices of allocation. If you received property as patronage dividends, report the fair market value of the property as income. Include cash advances received from a marketing cooperative. If you received per-unit retains in cash, show the amount of cash. If you received qualified per-unit retain certificates, show the stated dollar amount of the certificates.

Do not include as income on line 3b patronage dividends from buying personal or family items, capital assets, or depreciable assets. Enter these amounts on line 3a only. Because you do not report patronage dividends from these items as income, you must subtract the amount of the dividend from the cost or other basis of these items.

Agricultural Program Payments 

Enter the total of the following amounts here:

  1. Direct payments.
  2. Counter-cyclical payments.
  3. Price loss coverage payments.
  4. Agriculture risk coverage payments.
  5. Price support payments.
  6. Market gain from the repayment of a secured Commodity Credit Corporation (CCC) loan for less than the original loan amount.
  7. Diversion payments.
  8. Cost-share payments (sight drafts).
  9. Payments in the form of materials (such as fertilizer or lime) or services (such as grading or building dams).

These amounts are government payments you received, usually reported to you on Form 1099-G. You may also receive Form CCC-1099-G from the Department of Agriculture showing the amounts and types of payments made to you.These amounts are government payments you received and are usually reported to you on Form 1099-G. You may also receive Form CCC-1099-G from the Department of Agriculture showing the amounts and types of payments made to you.

On line 4b, report only the taxable amount. For example, do not report the market gain shown on Form CCC-1099-G on line 4b if you elected to report CCC loan proceeds as income in the year received (see Lines 5a Through 5c, next). No gain results from redemption of the commodity because you previously reported the CCC loan proceeds as income. You are treated as repurchasing the commodity for the amount of the loan repayment. However, if you did not report the CCC loan proceeds under the election, you must report the market gain on line 4b.

For more information see Schedule F Instructions.


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Views: 674 Created on: Jun 15, 2013
Date updated: Aug 27, 2015

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