Report a farm that your spouse operates as a business in Part 5.

For Your Spouse

Part 5

Reporting a Farm in Which You Have No Financial Interest

Report a farm that your spouse operates as a business, and in which you have no financial interest, if its value was more than $1,000 at the end of the reporting period or if your spouse received more than $1,000 in earned income during the reporting period (or more than $200 in interest, dividends, capital gains, rent, or royalties).

Do not report passive investment interests in a farm in Part 5.  Report these interests in Part 6 instead.

Description:  Provide the name of farm (or write “spouse’s farm” for a sole proprietorship); the location of the farm (either the city and state or the county and state); and the business of the farm, such as crops or livestock.  In addition, it is helpful if you specify the type of interest that your spouse has in the farm, such as “sole proprietor” or “general partner.”

EIF:  Select “N/A.”

Value:  Select the appropriate category to report the value of the farm, including such assets as the land, the crops (standing or in storage), the livestock, the farm equipment, the buildings, etc.

Income Type:  Write “farming income” if your spouse’s earned income exceeded $1,000 during the reporting period.  Select the applicable type of income categories for income over $200 that can be classified as interest, dividends, capital gains, rent, or royalties.

Income Amount:  Select the category corresponding to the total amount of interest, dividends, capital gains, rent, or royalties received during the reporting period.  Do not provide an amount for earned income.

Reporting a Farm in Which You Have a Financial Interest

If you have only a passive investment interest in a farm that your spouse operates as a business, you may use the guidance above for your spouse’s interest in the farm and report your interest in Part 6.  If you also have an active role in the business, you would report your interest in Part 2.