Fillable Form 4835

What is Form 4835?

Form 4835, Farm Rental Income and Expenses, is an Internal Revenue Service (IRS) form used by landowners and sub-lessors to report farm rental income based on crops or livestock produced by the tenant.

A tenant is defined in this case as a person who works on the land owned by the landowner or sub-lessor and pays rent through money or in shares of their produce.

The 4835 form should only be used by landowners that receive rent in the form of shares in the produce and livestock raised by the tenant. Certain persons need not file Form 4835 IRS - instead, they may need to file a different tax form depending on their status. The persons that are exempted from having to file the 4835 tax form are as follows:

• Tenant—instead use Schedule F (Form 1040) to report farm income and expenses
• Landowner (or sub-lessor) and materially participated in the operation or management of the farm—instead use Schedule F (Form 1040) to report farm income and expenses.
• Landowner (or sub-lessor) and received cash rent for pasture or farmland based on a flat charge—instead report as income on Schedule E (Form 1040), Part I.
• Estate or trust with rental income and expenses from crop and livestock shares—instead report on Schedule E (Form 1040), Part I.
• Partnership or S corporation with rental income and expenses from crop and livestock shares—instead report on Form 8825.

Who needs to use Form 4835?

Landowners and sub-lessors that do not materially participate in the operation or management of the farm (for self-employment tax purposes) file IRS Form 4835 to report farm rental income based on crops or livestock produced by the tenant.

How to fill out Form 4835?

Tax form 4835 is a very simple form to fill out. Make sure to download it in PDF format to ensure that its format and all information entered remain intact regardless of how it is opened or submitted. It may also be beneficial to have the relevant documents prepared to make sure that all information entered is updated and correct.

If more information on the form is needed, you may consult the instructions for Form 4835 on pages 2 and 3 of this form.

Name(s) Shown on Tax Return

Enter all names as shown on the relevant tax return.

Your Social Security Number

Enter your Social Security Number (SSN).

Employer Identification Number

Enter your Employer Identification Number (EIN), if any.

Line A

Check “Yes” if you actively participated in the operation of the farm in the year 2021. Otherwise, check “No”. See the instructions for more details on what constitutes “active participation”.

Part I - Gross Rental Farm Income - Based on Production

Include amounts here as converted to cash or equivalent.

Line 1

Enter the income earned from the production of livestock, produce, grains, and other crops.

Line 2a

Enter the amount of cooperative distributions as indicated on Form(s) 1099-PATR.

Line 2b

Enter the taxable amount of the cooperative distributions.

Line 3a

Enter the total amount of agricultural program payments made.

Line 3b

Enter the taxable amount of those payments.

Line 4a

Enter the amount of Commodity Credit Corporation (CCC) loans reported under election.

Line 4b

Enter the amount of CCC loans forfeited.

Line 5a

Enter the amount of crop insurance proceeds and federal crop disaster payments received in 2021.

Line 5b

Enter the taxable amount of crop insurance proceeds and federal crop disaster payments received.

Line 5c

Check the box provided if an election to defer to 2022 is or will be attached to this form.

Line 5d

Enter the amount deferred from 2020, if any.

Line 6

Enter the total of any other income, including federal and state gasoline or fuel tax credit or refund.

Line 7

Add the amounts in the right-hand column for Lines 1 through 6 and enter the sum here and on Schedule E (Form 1040), Line 42.

Part II - Expenses - Farm Rental Property

Do not include personal or living expenses in any of the amounts entered in this section.

Line 8

Enter the total expenses spent on cars and trucks.

Line 9

Enter the total of expenses spent on chemicals.

Line 10

Enter the total expenses spent on conservation.

Line 11

Enter the expenses spent for custom hire (machine work).

Line 12

Enter the amount of depreciation and section 179 expense deduction not claimed anywhere.

Line 13

Enter the expenses spent for employee benefit programs (other than on Line 21).

Line 14

Enter the total expenses spent on feed.

Line 15

Enter the total expenses spent on fertilizers and lime.

Line 16

Enter the total expenses spent for freight and trucking.

Line 17

Enter the total expenses spent on gasoline, fuel, and oil.

Line 18

Enter the total expenses spent on insurance (other than health insurance).

Line 19a

Enter the amount of interest on mortgages (paid to banks, et cetera).

Line 19b

Enter the amount of any other interest.

Line 20

Enter the total expenses spent for hired labor, less the employment credits.

Line 21

Enter the total expenses spent on pension and profit-sharing plans.

Line 22a

Enter the total expenses spent on the rent or lease of vehicles, machinery, and equipment.

Line 22b

Enter the total expenses spent for any other rented or leased things, such as land or animals.

Line 23

Enter the total expenses spent on repairs and maintenance.

Line 24

Enter the total expenses spent on seeds and plants.

Line 25

Enter the total expenses spent on storage and warehousing.

Line 26

Enter the total expenses spent on supplies.

Line 27

Enter the total expenses spent on taxes.

Line 28

Enter the total expenses spent on utilities.

Line 29

Enter the total expenses spent on veterinary services, breeding, and medicine.

Line 30a to Line 30g

Enter any other expenses not declared above.

Line 31

Add Lines 8 through 30g and enter the sum.

Line 32

Subtract Line 31 from Line 7 and enter the difference. If the result is income (positive), enter it here and on Schedule E (Form 1040), Line 40. If the result is a loss (negative), proceed to Line 34.

Line 33

This Line is reserved for future use.

Line 34a and 34b

If Line 32 is a loss, check the box that describes your investment in this activity. You may choose between:

• All investment is at risk. (34a)
• Some investment is not at risk. (34b)

Line 34c

Note that you may need to complete Form 8582 to determine your amount of deductible loss. If 34b was checked, complete Form 6198 before accomplishing Form 8582.

Enter the amount of deductible loss here and on Schedule E (Form 1040), Line 40.

Tips when filling out Form 4835

While IRS Form 4835 is simple to fill out, it is very important to make sure that all information entered is accurate and complete, so it may be beneficial to double-check the form after it has been accomplished.

Make sure all information entered is correct, and that the form is submitted to the appropriate place on time. This will help avoid any consequences for giving the IRS the wrong information and ensure that your tax information is processed properly.

Practice good contract management. Make sure to keep a copy of the form in a safe and organized area, or even copy it again in order to be doubly sure that you have a backup in case the original is damaged in some way. This will be useful for possible legal purposes in the future, or even simply as a record.