User's Manual - Drake Software

Farm Income
Drake Software User’s Manual
• Part III Detailed Computation — Use this section to complete lines 15, 16, and
18 of Form 6198. If data is entered here, the program uses Part III to calculate the
amount at risk for these fields.
The lower portion of the screen has fields for entering prior-year carryover and current-year
losses and deductions. Use these fields for the following types of amounts:
• Prior-year losses that were not deductible due to the at-risk limitations
• Current-year amounts to override either (a) the equivalent fields on other K1
screens or (b) the at-risk calculation
NOTE
Most of the entries on the 6198 At-Risk tabs are used for calculating
Form 6198, line 4, “Other deductions and losses...”
At-Risk Limit
Worksheets
When applicable, the program produces At-Risk Limit Worksheets with the calculated
return. In View mode, the worksheets are listed as WK_IPRSK (for partnerships) and
WK_ISRSK (for shareholders). Two copies of the worksheet are printed for each
Schedule K-1: one for regular tax and one for the alternative minimum tax (AMT).
Use the scroll bar in View mode to see both copies.
NOTE
To force the software to print the At-Risk Limit Worksheets even when
they are not needed, mark the check box at the bottom of the 6198 At
Risk continued tab.
Farm Income
Entry fields for the following farm-related forms are located under the Income tab:
Screen codes:
F, J, 4835
• Schedule F, Profit or Loss From Farming (can also be used with a 1065 return)
• Schedule J, Income Averaging for Farmers and Fishermen
• Form 4835, Farm Rental Income and Expenses
NOTES
Enter crop insurance and disaster payments for Schedule F and Form
4835 on the Crop Insurance and Disaster Payments (CIDP) screen.
The Auto Expense Worksheet (AUTO) screen can be applied to the F
and 4835 screens. See “Auto Expenses” on page 171.
Schedule F, Profit or Loss From Farming
Screen code: F
Screen F
Defaults
Use screen F, accessible from the Income tab, to enter data for Schedule F, Profit or
Loss From Farming.
The program’s default accounting method (item C) is cash. Select Accrual if the taxpayer’s
accounting method is not cash.
The default position for material participation (item E) is that the taxpayer “materially
participated” in the current year. If the taxpayer did not materially participate,
select Did NOT materially participate option.
130 Tax Year 2012