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IRS.gov Website
Instructions for Schedule E (Form 1040)
taxmap/instr/i1040se-007.htm#TXMP5ecd0a7f

Part V 
Summary(p8)

rule
taxmap/instr/i1040se-007.htm#TXMP2d20e52e

Line 42(p8)

rule
You will not be charged a penalty for underpayment of estimated tax if:
  1. Your gross farming or fishing income for 2009 or 2010 is at least two-thirds of your gross income, and
  2. You file your 2010 tax return and pay the tax due by March 1, 2011.
taxmap/instr/i1040se-007.htm#w24331i02
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Worksheet 1 — Excess farm loss from an interest in a partnership or S corporation involved in farming business(es)

caution In determining if you have an excess farm loss, do not take into account any deductions for losses arising by reason of fire, storm, or other casualty, or by reason of disease or drought, involving your farm businesses.
1.Enter the amount from your 2010 Schedule(s) E, line 31. If this amount is less than $300,000 ($150,000 if married filing separately), stop here. You do not have an excess farm loss in 2010. If more than $300,000 ($150,000 if married filing separately), continue to line 2 1.     
2.Subtract $300,000 ($150,000 if married filing separately) from line 1   2.  
3.Enter the amount from your 2010 Schedule(s) E, line 303.     
4.Is line 3 greater than or equal to line 2? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 5   
5.Enter your net gain/loss from the sale of farming business property reported on Form 47975.     
6.Enter your net gain/loss from the sale of farming business property reported on Schedule D6.     
7.Combine line 5 and line 6. If zero or less, enter -0-   7.  
8.Add line 3 and line 7. Is this greater than or equal to line 2? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 9    8.  
9.Enter the amount from your 2009 Schedule(s) E, line 329.  
10.Enter your combined net gain/loss from the sale of farming business property reported on your 2009 Form 4797 and Schedule D. If zero or less, enter -0- 10. 
11.Enter the amount from your 2008 Schedule(s) E, line 3211. 
12.Enter your combined net gain/loss from the sale of farming business property reported on your 2008 Form 4797 and Schedule D. If zero or less, enter -0- 12. 
13.Enter the amount from your 2007 Schedule(s) E, line 3213. 
14.Enter your combined net gain/loss from the sale of farming business property reported on your 2007 Form 4797 and Schedule D. If zero or less, enter -0- 14. 
15.Enter the amount from your 2006 Schedule(s) E, line 3215. 
16.Enter your combined net gain/loss from the sale of farming business property reported on your 2006 Form 4797 and Schedule D. If zero or less, enter -0- 16. 
17.Enter the amount from your 2005 Schedule(s) E, line 3217. 
18.Enter your combined net gain/loss from the sale of farming business property reported on your 2005 Form 4797 and Schedule D. If zero or less, enter -0- 18. 
19.Combine lines 9 through 18. If zero or less, enter -0-   19.  
20.Enter the greater of line 19 or $300,000 ($150,000 if married filing separately)   20.  
21.Add line 8 and line 20   21.  
22.Excess farm loss. Subtract line 1 from line 21. If zero or less, you have an excess farm loss that reduces the amount of loss you can deduct this year. If you have more than one farming business with an overall loss this year, allocate the excess farm loss amount on a pro rata basis among those farming businesses.    22.