You must include in income most government payments, such as those for approved conservation practices, direct payments, and counter-cyclical payments, whether you receive them in cash, materials, services, or commodity certificates. However, you can exclude from income some payments you receive under certain cost-sharing conservation programs. See Cost-Sharing Exclusion (Improvements), later.
Report the agricultural program payment on the appropriate line of Schedule F, Part I. Report the full amount even if you return a government check for cancellation, refund any of the payment you receive, or the government collects all or part of the payment from you by reducing the amount of some other payment or Commodity Credit Corporation (CCC) loan. However, you can deduct the amount you refund or return or that reduces some other payment or loan to you. Claim the deduction on Schedule F for the year of repayment or reduction.taxmap/pubs/p225-008.htm#en_us_publink100076973
Generally, you do not report loans you receive as income. However, if you pledge part or all of your production to secure a CCC loan, you can treat the loan as if it were a sale of the crop and report the loan proceeds as income in the year you receive them. You do not need approval from the IRS to adopt this method of reporting CCC loans.
Once you report a CCC loan as income for the year received, you generally must report all CCC loans in that year and later years in the same way. However, you can obtain automatic consent to change your method of accounting for loans received from the CCC, from including the loan amount in gross income for the tax year in which the loan is received to treating the loan amount as a loan. For more information, see Part I of the instructions for Form 3115 and Revenue Procedure 2008-52 as modified by Announcement 2008-84. See Revenue Procedure 2008-52, 2008-36 I.R.B. 587, available at www.irs.gov/irb/2008-36_IRB/ar09.html.
See Announcement 2008-84, 2008-38 I.R.B. 748, available at www.irs.gov/irb/2008-38_IRB/ar14.html.
You can request income tax withholding from CCC loan payments you receive. Use Form W-4V, Voluntary Withholding Request. See chapter 16 for information about ordering the form.
To elect to report a CCC loan as income, include the loan proceeds as income on Schedule F, line 7a, for the year you receive it. Attach a statement to your return showing the details of the loan.
You must file the statement and the return by the due date of the return, including extensions. If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Attach the statement to the amended return and write "Filed pursuant to section 301.9100-2" at the top of the return. File the amended return at the same address you filed the original return.
When you make this election, the amount you report as income becomes your basis in the commodity. See chapter 6 for information on the basis of assets. If you later repay the loan, redeem the pledged commodity, and sell it, you report as income at the time of sale the sale proceeds minus your basis in the commodity. If the sale proceeds are less than your basis in the commodity, you can report the difference as a loss on Schedule F.
If you forfeit the pledged crops to the CCC in full payment of the loan, the forfeiture is treated for tax purposes as a sale of the crops. If you did not report the loan proceeds as income for the year you received them, you must include them in your income for the year of the forfeiture. taxmap/pubs/p225-008.htm#en_us_publink100076975
If you forfeit pledged crops to the CCC in full payment of a loan, you may receive a Form 1099-A, Acquisition or Abandonment of Secured Property. "CCC" should be shown in box 6. The amount of any CCC loan outstanding when you forfeited your commodity should also be indicated on the form.taxmap/pubs/p225-008.htm#en_us_publink100076976
Under the CCC nonrecourse marketing assistance loan program, your repayment amount for a loan secured by your pledge of an eligible commodity is generally based on the lower of the loan rate or the prevailing world market price for the commodity on the date of repayment. If you repay the loan when the world price is lower, the difference between that repayment amount and the original loan amount is market gain. Whether you use cash or CCC certificates to repay the loan, you will receive a Form CCC-1099-G showing the market gain you realized. Market gain should be reported as follows.
- If you elected to include the CCC loan in income in the year you received it, do not include the market gain in income. However, adjust the basis of the commodity for the amount of the market gain.
- If you did not include the CCC loan in income in the year received, include the market gain in your income.
The following examples show how to report market gain.taxmap/pubs/p225-008.htm#en_us_publink100076977
Mike Green is a cotton farmer. He uses the cash method of accounting and files his tax return on a calendar year basis. He has deducted all expenses incurred in producing the cotton and has a zero basis in the commodity. In 2007, Mike pledged 1,000 pounds of cotton as collateral for a CCC loan of $500 (a loan rate of $.50 per pound). In 2008, he repaid the loan and redeemed the cotton for $420 when the world price was $.42 per pound (lower than the loan amount). Later in 2008, he sold the cotton for $600.
The market gain on the redemption was $.08 ($.50 – $.42) per pound. Mike realized total market gain of $80 ($.08 x 1,000 pounds). How he reports this market gain and figures his gain or loss from the sale of the cotton depends on whether he included CCC loans in income in 2007.taxmap/pubs/p225-008.htm#en_us_publink100076978
Mike reported the $500 CCC loan as income for 2007, so he is treated as if he sold the cotton for $500 when he pledged it and repurchased the cotton for $420 when he redeemed it. The $80 market gain is not recognized on the redemption. He reports it for 2008 as an agricultural program payment on Schedule F, line 6a, but does not include it as a taxable amount on line 6b.
Mike's basis in the cotton after he redeemed it was $420, which is the redemption (repurchase) price paid for the cotton. His gain from the sale is $180 ($600 – $420). He reports the $180 gain as income for 2008 on Schedule F, line 4.taxmap/pubs/p225-008.htm#en_us_publink100076979
Mike has income of $80 from market gain in 2008. He reports it on Schedule F, line 6a and line 6b. His basis in the cotton is zero, so his gain from its sale is $600. He reports the $600 gain as income for 2008 on Schedule F, line 4.taxmap/pubs/p225-008.htm#en_us_publink100076980
The facts are the same as in Example 1 except that, instead of selling the cotton for $600 after redeeming it, Mike entered into an option-to-purchase contract with Tom Merchant before redeeming the cotton. Under that contract, Mike authorized Tom to pay the CCC loan on Mike's behalf. In 2008, Tom repaid the loan for $420 and immediately exercised his option, buying the cotton for $420. How Mike reports the $80 market gain on the redemption of the cotton and figures his gain or loss from its sale depends on whether he included CCC loans in income in 2007.taxmap/pubs/p225-008.htm#en_us_publink100076981
As in Example 1, Mike is treated as though he sold the cotton for $500 when he pledged it and repurchased the cotton for $420 when Tom redeemed it for him. The $80 market gain is not recognized on the redemption. Mike reports it for 2008 as an Agricultural program payment on Schedule F, line 6a, but does not include it as a taxable amount on line 6b.
Also, as in Example 1, Mike's basis in the cotton when Tom redeemed it for him was $420. Mike has no gain or loss on its sale to Tom for that amount.taxmap/pubs/p225-008.htm#en_us_publink100076982
As in Example 1, Mike has income of $80 from market gain in 2008. He reports it on Schedule F, line 6a and line 6b. His basis in the cotton is zero, so his gain from its sale is $420. He reports the $420 gain as income for 2008 on Schedule F, line 4.taxmap/pubs/p225-008.htm#en_us_publink100076983
Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a long-term contract with the USDA, agreeing to convert to a less intensive use of that cropland. You must include the annual rental payments and any one-time incentive payment you receive under the program on Schedule F, lines 6a and 6b. Cost-share payments you receive may qualify for the cost-sharing exclusion. (See Cost-Sharing Exclusion, later.) CRP payments are reported to you on Form CCC-1099-G.
Certain Conservation Reserve Program payments may be excluded from self-employment tax. For more information, see chapter 12.
You must include in income any crop insurance proceeds you receive as the result of crop damage. You generally include them in the year you receive them. Treat as crop insurance proceeds the crop disaster payments you receive from the federal government as the result of destruction or damage to crops, or the inability to plant crops, because of drought, flood, or any other natural disaster.
You can request income tax withholding from crop disaster payments you receive from the federal government. Use Form W-4V, Voluntary Withholding Request. See chapter 16 for information about ordering the form.
You can postpone reporting crop insurance proceeds as income until the year following the year the damage occurred if you meet all the following conditions.
- You use the cash method of accounting.
- You receive the crop insurance proceeds in the same tax year the crops are damaged.
- You can show that under your normal business practice you would have included income from the damaged crops in any tax year following the year the damage occurred.
To postpone reporting crop insurance proceeds received in 2008, report the amount you received on Schedule F, line 8a, but do not include it as a taxable amount on line 8b. Check the box on line 8c and attach a statement to your tax return. The statement must include your name and address and contain the following information.
- A statement that you are making an election under section 451(d) of the Internal Revenue Code and Regulations section 1.451-6.
- The specific crop or crops destroyed or damaged.
- A statement that under your normal business practice you would have included income from the destroyed or damaged crops in gross income for a tax year following the year the crops were destroyed or damaged.
- The cause of the destruction or damage and the date or dates it occurred.
- The total payments you received from insurance carriers, itemized for each specific crop, and the date you received each payment.
- The name of each insurance carrier from whom you received payments.
One election covers all crops representing a single trade or business. If you have more than one farming business, make a separate election for each one. For example, if you operate two separate farms on which you grow different crops and you keep separate books for each farm, you should make two separate elections to postpone reporting insurance proceeds you receive for crops grown on each of your farms.
An election is binding for the year unless the IRS approves your request to change it. To request IRS approval to change your election, write to the IRS at the following address giving your name, address, identification number, the year you made the election, and your reasons for wanting to change it. taxmap/pubs/p225-008.htm#en_us_publink100076988
Ogden Submission Processing Center
P. O. Box 9941
Ogden, UT 84409
The Disaster Assistance Act of 1988 authorizes programs to provide feed assistance, reimbursement payments, and other benefits to qualifying livestock producers if the Secretary of Agriculture determines that, because of a natural disaster, a livestock emergency exists. These programs include partial reimbursement for the cost of purchased feed and for certain transportation expenses. They also include the donation or sale at a below-market price of feed owned by the Commodity Credit Corporation.
Include in income:
- The market value of donated feed,
- The difference between the market value and the price you paid for feed you buy at below market prices, and
- Any cost reimbursement you receive.
You must include these benefits in income in the year you receive them. You cannot postpone reporting them under the rules explained earlier for weather-related sales of livestock or crop insurance proceeds. Report the benefits on Schedule F, Part I, as agricultural program payments. You can usually take a current deduction for the same amount as a feed expense.taxmap/pubs/p225-008.htm#en_us_publink100076989
You can exclude from your income part or all of a payment you receive under certain federal or state cost-sharing conservation, reclamation, and restoration programs. A payment is any economic benefit you get as a result of an improvement. However, this exclusion applies only to that part of a payment that meets all three of the following tests.
- It was for a capital expense. You cannot exclude any part of a payment for an expense you can deduct in the year you pay or incur it. You must include the payment for a deductible expense in income, and you can take any offsetting deduction. (See chapter 5 for information on deducting soil and water conservation expenses.)
- It does not substantially increase your annual income from the property for which it is made. An increase in annual income is substantial if it is more than the greater of the following amounts.
- 10% of the average annual income derived from the affected property before receiving the improvement.
- $2.50 times the number of affected acres.
- The Secretary of Agriculture certified that the payment was primarily made for conserving soil and water resources, protecting or restoring the environment, improving forests, or providing a habitat for wildlife.
If the three tests listed above are met, you can exclude payments from the following programs.
- The rural clean water program authorized by the Federal Water Pollution Control Act.
- The rural abandoned mine program authorized by the Surface Mining Control and Reclamation Act of 1977.
- The water bank program authorized by the Water Bank Act.
- The emergency conservation measures program authorized by title IV of the Agricultural Credit Act of 1978.
- The agricultural conservation program authorized by the Soil Conservation and Domestic Allotment Act.
- The great plains conservation program authorized by the Soil Conservation and Domestic Policy Act.
- The resource conservation and development program authorized by the Bankhead-Jones Farm Tenant Act and by the Soil Conservation and Domestic Allotment Act.
- Certain small watershed programs, listed later.
- Any program of a state, possession of the United States, a political subdivision of any of these, or of the District of Columbia under which payments are made to individuals primarily for conserving soil, protecting or restoring the environment, improving forests, or providing a habitat for wildlife. Several state programs have been approved. For information about the status of those programs, contact the state offices of the Farm Service Agency (FSA) and the Natural Resources and Conservation Service (NRCS).
If the three tests listed earlier are met, you can exclude payments you receive under the following programs for improvements made in connection with a watershed.
- The programs under the Watershed Protection and Flood Prevention Act.
- The flood prevention projects under the Flood Control Act of 1944.
- The Emergency Watershed Protection Program under the Flood Control Act of 1950.
- Certain programs under the Colorado River Basin Salinity Control Act.
- The Wetlands Reserve Program authorized by the Food Security Act of 1985, the Federal Agriculture Improvement and Reform Act of 1996 and the Farm Security and Rural Investment Act of 2002.
- The Environmental Quality Incentives Program (EQIP) authorized by the Federal Agriculture Improvement and Reform Act of 1996.
- The Wildlife Habitat Incentives Program (WHIP) authorized by the Federal Agriculture Improvement and Reform Act of 1996.
- The Soil and Water Conservation Assistance Program authorized by the Agricultural Risk Protection Act of 2000.
- The Agricultural Management Assistance Program authorized by the Agricultural Risk Protection Act of 2000.
- The Conservation Reserve Program authorized by the Food Security Act of 1985 and the Federal Agriculture Improvement and Reform Act of 1996.
- The Forest Land Enhancement Program authorized under the Farm Security and Rural Investment Act of 2002.
- The Conservation Security Program authorized by the Food Security Act of 1985.
The gross income you realize upon getting an improvement under these cost-sharing programs is the value of the improvement reduced by the sum of the excludable portion and your share of the cost of the improvement (if any).taxmap/pubs/p225-008.htm#en_us_publink100076993
You determine the value of the improvement by multiplying its fair market value (defined in chapter 6) by a fraction. The numerator of the fraction is the total cost of the improvement (all amounts paid either by you or by the government for the improvement) reduced by the sum of the following items.
- Any government payments under a program not listed earlier.
- Any part of a government payment under a program listed earlier that the Secretary of Agriculture has not certified as primarily for conservation.
- Any government payment to you for rent or for your services.
The denominator of the fraction is the total cost of the improvement.
The excludable portion is the present fair market value of the right to receive annual income from the affected acreage of the greater of the following amounts.
- 10% of the prior average annual income from the affected acreage. The prior average annual income is the average of the gross receipts from the affected acreage for the last 3 tax years before the tax year in which you started to install the improvement.
- $2.50 times the number of affected acres.
The calculation of present fair market value of the right to receive annual income is too complex to discuss in this publication. You may need to consult your tax advisor for assistance.
One hundred acres of your land was reclaimed under a rural abandoned mine program contract with the Natural Resources Conservation Service of the USDA. The total cost of the improvement was $500,000. The USDA paid $490,000. You paid $10,000. The value of the cost-sharing improvement is $15,000.
The present fair market value of the right to receive the annual income described in (1) above is $1,380, and the present fair market value of the right to receive the annual income described in (2) is $1,550. The excludable portion is the greater amount, $1,550.
You figure the amount to include in gross income as follows:
|Value of cost-sharing improvement||$15,000|
|Minus:||Your share||$10,000|| |
| ||Excludable portion||1,550||11,550|
|Amount included in income||$ 3,450|
When you figure the basis of property you acquire or improve using cost-sharing payments excluded from income, subtract the excluded payments from your capital costs. Any payment excluded from income is not part of your basis.
In addition, you cannot take depreciation, amortization, or depletion deductions for the part of the cost of the property for which you receive cost-sharing payments you exclude from income.taxmap/pubs/p225-008.htm#en_us_publink100076998
Attach a statement to your tax return (or amended return) for the tax year you receive the last government payment for the improvement. The statement must include the following information.
- The dollar amount of the cost funded by the government payment.
- The value of the improvement.
- The amount you are excluding.
Report the total cost-sharing payments you receive on Schedule F, line 6a, and the taxable amount on line 6b.taxmap/pubs/p225-008.htm#en_us_publink100076999
If you dispose of the property within 20 years after you received the excluded payments, you must treat as ordinary income part or all of the cost-sharing payments you excluded. You must report the recapture on Form 4797. See Section 1255 property under Other Gains in chapter 9.taxmap/pubs/p225-008.htm#en_us_publink100077000
You can elect not to exclude all or part of any payments you receive under these programs. If you make this election for all of these payments, none of the above restrictions and rules apply. You must make this election by the due date, including extensions, for filing your return. If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Write "Filed pursuant to section 301.9100-2" at the top of the amended return and file it at the same address you filed the original return.taxmap/pubs/p225-008.htm#en_us_publink100077001
The Farm Security and Rural Investment Act of 2002 created two new types of payments—direct and counter-cyclical payments. You must include these payments on Schedule F, lines 6a and 6b.taxmap/pubs/p225-008.htm#en_us_publink100077002
The Fair and Equitable Tobacco Reform Act of 2004, Title VI of the American Jobs Creation Act of 2004, terminated the tobacco marketing quota program and the tobacco price support program. As a result, the USDA offered to enter into contracts with eligible tobacco quota holders and growers to provide compensation for the lost value of the quotas and related price support.
If you are an eligible tobacco quota holder, your contract entitles you to receive total payments of $7 per pound of quota in 10 equal annual payments in fiscal years 2005 through 2014. If you are an eligible tobacco grower, your contract entitles you to receive total payments of up to $3 per pound of quota in 10 equal annual payments in fiscal years 2005 through 2014. taxmap/pubs/p225-008.htm#en_us_publink100077003
Contract payments you receive are considered proceeds from a sale of your tobacco quota as of the date on which you and the USDA enter into the contract. Your taxable gain or loss is the total amount received for your quota reduced by any amount treated as interest (discussed below), over your adjusted basis. The gain or loss is capital or ordinary depending on how you used the quota. See Capital or ordinary gain or loss, later.
Report the entire gain on your income tax return for the tax year that includes the date you entered into the contract if you elect not to use the installment method.taxmap/pubs/p225-008.htm#en_us_publink100077004
The adjusted basis of your quota is determined differently depending on how you obtained the quota.
- The basis of a quota derived from an original grant by the federal government is zero.
- The basis of a purchased quota is the purchase price.
- The basis of a quota received as a gift is generally the same as the donor's basis. However, under certain circumstances, the basis is increased by the amount of gift taxes paid. If the basis is greater than the fair market value of the quota at the time of the gift, the basis for determining loss is the fair market value.
- The basis of an inherited quota is generally the fair market value of the quota at the time of the decedent's death.
You are required to reduce the basis of your tobacco quota by the following amounts.
- Deductions you took for amortization, depletion, or depreciation.
- Amounts you previously deducted as a loss because of a reduction in the number of pounds of tobacco allowable under the quota.
- The entire cost of a purchased quota you deducted in an earlier year (which reduces your basis to zero).
You must reduce your tobacco quota buyout program payment by the amount treated as interest. The interest is reportable as ordinary income. If payments total $3,000 or less, your total quota buyout program payment does not include any amount treated as interest and you are not required to reduce the total payment you receive.
In all other cases, a portion of each payment may be treated as interest for federal tax purposes. You may be required to reduce your total quota buyout program payment before you calculate your gain or loss. For more information, see Notice 2005-57 on page 267 of Internal Revenue Bulletin 2005-32. This bulletin is available at www.irs.gov/pub/irs-irbs/irb05-32.pdf.
You may use the installment method to report a gain if you receive at least one payment after the close of your tax year. Under the installment method, a portion of the gain is taken into account in each year in which a payment is received. See chapter 10 for more information.taxmap/pubs/p225-008.htm#en_us_publink100077008
Whether your gain or loss is ordinary or capital depends on how you used the quota.taxmap/pubs/p225-008.htm#en_us_publink100077009
If you used the quota in the trade or business of farming and you held it for more than one year, you report the transaction as a section 1231 transaction on Form 4797. See Section 1231 transactions under Ordinary or Capital Gain or Loss in chapter 8 for a definition of section 1231 transactions.
See the Instructions for Form 4797 for detailed information on reporting section 1231 transactions.taxmap/pubs/p225-008.htm#en_us_publink100077010
If you held the quota for investment purposes, any gain or loss is capital gain or loss. The same result also applies if you held the quota for the production of income, though not connected with a trade or business.taxmap/pubs/p225-008.htm#en_us_publink100077011
If you previously deducted any of the following items, some or all of the capital gain must be recharacterized and reported as ordinary income. Any resulting capital gain is taxed as ordinary income up to the amount previously deducted.
- The cost of acquiring a quota.
- Amounts for amortization, depletion, or depreciation.
- Amounts to reflect a reduction in the quota pounds.
You should include the ordinary income on your return for the tax year even if you use the installment method to report the remainder of the gain.taxmap/pubs/p225-008.htm#en_us_publink100077012
The tobacco quota buyout payments are not self-employment income.taxmap/pubs/p225-008.htm#en_us_publink100077013
The gain or loss resulting from the quota payments does not qualify for income averaging. A tobacco quota is considered an interest in land. Income averaging is not available for gain or loss arising from the sale or other disposition of land.taxmap/pubs/p225-008.htm#en_us_publink100077014
The buyout of the tobacco quota is not an involuntary conversion.taxmap/pubs/p225-008.htm#en_us_publink100077015
A tobacco quota is considered an interest in land, so the USDA will generally report the total amount you receive under a contract on Form 1099-S if the amount is $600 or more. The USDA will generally report any portion of a payment treated as interest of $600 or more to you on Form 1099-INT for the year in which the payment is made.taxmap/pubs/p225-008.htm#en_us_publink100077016
You may postpone reporting the gain or loss from tobacco quota buyout payments by entering into a like-kind exchange if you comply with the requirements of section 1031 and the regulations thereunder. See Notice 2005-57 for more information.taxmap/pubs/p225-008.htm#en_us_publink100077017
For more information on the taxation of payments to tobacco quota holders, see Notice 2005-57.taxmap/pubs/p225-008.htm#en_us_publink100077018
Contract payments you receive are determined by reference to the amount of quota under which you produced (or planted) quota tobacco during the 2002, 2003, and 2004 tobacco marketing years and are prorated based on the number of years that you produced (or planted) quota tobacco during those years. taxmap/pubs/p225-008.htm#en_us_publink100077019
Payments to growers replace ordinary income that would have been earned had the tobacco marketing quota and price support programs continued. Individuals will generally report the payments as an Agricultural program payment on Schedule F. If you are a landowner who does not materially participate in the operation or management of the farm and are receiving the grower payment because your farm rental income is based on the tobacco grown by a tenant, the grower payment should be reported on Form 4835, Farm Rental Income and Expenses.taxmap/pubs/p225-008.htm#en_us_publink100077020
Payments to growers generally represent self-employment income. If the grower is an individual carrying on a trade or business and deriving income (other than farm rental income properly reported on Form 4835) from that trade or business, the payments are net earnings from self-employment.taxmap/pubs/p225-008.htm#en_us_publink100077021
Payments to growers who are individuals qualify for farm income averaging.taxmap/pubs/p225-008.htm#en_us_publink100077022
If the amount received in a taxable year is $600 or more, the amount will generally be reported by the USDA on a Form 1099-G.taxmap/pubs/p225-008.htm#en_us_publink100077023
You must include most other government program payments in income.taxmap/pubs/p225-008.htm#en_us_publink100077024
Include in income the value of fertilizer or lime you receive under a government program. How to claim the offsetting deduction is explained under Fertilizer and Lime in chapter 4.taxmap/pubs/p225-008.htm#en_us_publink100077025
If government payments are based on improvements, such as a pollution control facility, you must include them in income. You must also capitalize the full cost of the improvement. Since you have included the payments in income, they do not reduce your basis. However, see Cost-Sharing Exclusion (Improvements), earlier, for additional information.taxmap/pubs/p225-008.htm#en_us_publink100077026
If you are a producer, landowner, or tobacco quota owner who receives money from the National Tobacco Growers' Settlement Trust Fund, you must report those payments as income. You should receive a Form 1099-MISC that shows the payment amount.
If you produce a tobacco crop, report the payments as income from farming on your Schedule F. If you are a landowner or tobacco quota owner who leases tobacco-related property but you do not produce the crop, report the payments as farm rental income on Form 4835.taxmap/pubs/p225-008.htm#en_us_publink100077027
The USDA reports program payments to the IRS. It reports a program payment intended for more than one person as having been paid to the person whose identification number is on record for that payment (payee of record). If you, as the payee of record, receive a program payment belonging to someone else, such as your landlord, the amount belonging to the other person is a nominee distribution. You should file Form 1099-G to report the identity of the actual recipient to the IRS. You should also give this information to the recipient. You can avoid the inconvenience of unnecessary inquiries about the identity of the recipient if you file this form.
Report the total amount reported to you as the payee of record on Schedule F, line 6a or 8a. However, do not report as a taxable amount on line 6b or 8b any amount belonging to someone else.
See chapter 16 for information about ordering Form 1099-G.