Farm Rental Income and Expenses                                            OMB No. 1545-0074
Form  4835                       (Crop and Livestock Shares (Not Cash) Received by Landowner (or Sub-Lessor)) 
                                             (Income Not Subject to Self-Employment Tax)
Department of the Treasury                      Attach to Form 1040, 1040-SR, or 1040-NR.                               2023
                                                                                                                       Attachment   
Internal Revenue Service                  Go to www.irs.gov/Form4835 for the latest information.                       Sequence No. 37 
Name(s) shown on tax return                                                                                   Your social security number

                                                                                                              Employer ID number (EIN), if any 

A     Did you actively participate in the operation of this farm during 2023? See instructions   .        . . . . . .   Yes              No
Part I    Gross Farm Rental Income—Based on Production.  Include amounts converted to cash or the equivalent.
1     Income from production of livestock, produce, grains, and other crops      .  .  .   . .   .        . . . .   1 
2 a   Cooperative distributions (Form(s) 1099-PATR)     .  .    2a                       2b Taxable amount          2b
3 a   Agricultural program payments (see instructions)  .  .    3a                       3b Taxable amount          3b
4     Commodity Credit Corporation (CCC) loans (see instructions):
  a   CCC loans reported under election     .   . .   . .  .  . .     . . .    . .  .  .   . .   .        . . . .   4a 
  b   CCC loans forfeited        . . . .  . .   . .   . .  .    4b                       4c Taxable amount          4c 
5     Crop insurance proceeds and federal crop disaster payments (see instructions):
  a   Amount received in 2023 .      . .  . .   . .   . .  .    5a                       5b Taxable amount          5b
  c   If election to defer to 2024 is attached, check here      5d  Amount deferred from 2022             . . . .   5d
6     Other income, including federal and state gasoline or fuel tax credit or refund (see instructions)      . .   6 
7     Gross farm rental income.      Add amounts in the right column for lines 1 through 6. Enter the total here 
      and on Schedule E (Form 1040), line 42 .    .   . .  .  . .     . . .    . .  .  .   . .   .        . . . .   7 
Part II   Expenses—Farm Rental Property.  Do not include personal or living expenses.
8     Car and            truck   expenses (see                           21    Pension  and  profit-sharing 
      Schedule F (Form 1040)  instructions).                                   plans  .    . .   .        . . . .   21 
      Also attach Form 4562        . . .  . .     8                      22    Rent or lease:
9     Chemicals          .  .  . . . . .  . .     9                         a  Vehicles,     machinery,       and 
10    Conservation expenses (see instructions)    10                           equipment (see instructions)         22a
11    Custom hire (machine work) .     .  . .     11                        b  Other (land, animals, etc.) .    . 22b
12    Depreciation and section 179 expense                               23    Repairs and maintenance          .   23 
      deduction not claimed elsewhere  .    .     12                     24    Seeds and plants           . . . .   24 
13    Employee benefit programs other than                               25    Storage and warehousing          .   25 
      on line 21 (see Schedule F (Form 1040)                             26    Supplies .    .   .        . . . .   26 
      instructions)  .      .  . . . . .  . .     13                     27    Taxes .     . .   .        . . . .   27 
14    Feed  .  .         .  .  . . . . .  . .     14                     28    Utilities . . .   .        . . . .   28 
15    Fertilizers and lime .     . . . .  . .     15                     29    Veterinary,     breeding,      and 
16    Freight and trucking       . . . .  . .     16                           medicine .    .   .        . . . .   29 
17    Gasoline, fuel, and oil .    . . .  . .     17                     30    Other expenses (specify):
18    Insurance (other than health)    .  . .     18                        a                                       30a
19    Interest (see instructions):                                          b                                     30b
  a   Mortgage (paid to banks, etc.)  .   . .     19a                       c                                       30c
  b   Other .  .         .  .  . . . . .  . .   19b                         d                                     30d
20    Labor hired (less employment credits)                                 e                                       30e
      (see Schedule F (Form 1040)                                           f                                       30f
      instructions)  .      .  . . . . .  . .     20                        g                                     30g
31    Total expenses. Add lines 8 through 30g. See instructions       . . .    . .  .  .   . .   .        . . . .   31 
32    Net farm rental income or (loss). Subtract line 31 from line 7. If the result is income, enter it here and 
      on Schedule E (Form 1040), line 40. If the result is a loss, you must go to line 34. See instructions     .   32 
33    Reserved for future use      . . .  . .   . .   . .  .  . .     . . .    . .  .  .   . .   .        . . . .   33
34    If  line  32  is  a  loss,  check  the  box  that  describes  your  investment  in  this  activity.           34a All investment is at risk.
      See instructions .       . . . . .  . .   . .   . .  .  . .     . . .    . .  .  .   . .   .        . . . } 34b   Some investment is not 
                                                                                                                        at risk.
  c   You may have to complete       Form 8582  to determine your deductible loss, regardless of which box 
      you checked. If you checked box 34b, you must     complete Form 6198 before going to Form 8582. In
      either case, enter the deductible loss here and on Schedule E (Form 1040), line 40. See instructions.         34c
For Paperwork Reduction Act Notice, see your tax return instructions.                  Cat. No. 13117W                  Form 4835 (2023) 

Form 4835 (2023)                                                                                                     Page 2 

General Instructions                                           “material participation,” see the instructions for Schedule 
                                                               C (Form 1040), Profit or Loss From Business (Sole 
Section references are to the Internal Revenue Code            Proprietorship), line G. For more information on qualified 
unless otherwise noted.                                        joint ventures, go to www.irs.gov/QJV.
Future developments. For the latest information about          Additional information. See the Instructions for 
developments related to Form 4835 and its instructions,        Schedule F (Form 1040), Profit or Loss From Farming, 
such as legislation enacted after they were published, go      and Pub. 225 for more information.
to www.irs.gov/Form4835.
Purpose of Form                                                Specific Instructions
If you were the landowner (or sub-lessor) and did not          Employer ID number (EIN). You need an EIN only if you 
materially participate (for self-employment tax purposes)      had a qualified retirement plan or were required to file an 
in the operation or management of the farm, use Form           employment; excise; estate; trust; partnership; or alcohol, 
4835 to report farm rental income based on crops or            tobacco, and firearms tax return. If you need an EIN, see 
livestock produced by the tenant. See chapter 12 in Pub.       the Instructions for Form SS-4.
225, Farmer’s Tax Guide, for the definition of material        Line A. Generally, you are considered to actively 
participation for landlords.                                   participate if you participated in making management 
  Use this form only if the activity was a rental activity for decisions or arranging for others to provide services 
purposes of the passive activity loss limitations. See the     (such as repairs) in a significant and bona fide sense. 
Instructions for Form 8582, Passive Activity Loss              Management decisions that are relevant in this context 
Limitations, for the definition of “rental activity.”          include approving new tenants, deciding on rental terms, 
  If you have net income on line 32, your tax may be less      approving capital or repair expenditures, and other similar 
if you figure it using Schedule J (Form 1040).                 decisions. You do not, however, actively participate if at 
                                                               any time during the year your interest (including your 
  Do not use Form 4835 if you were a/an:                       spouse’s interest) in the activity was less than 10% (by 
• Tenant—instead use Schedule F (Form 1040) to report          value) of all interests in the activity.
farm income and expenses;
                                                               Part I. Gross Farm Rental Income—Based on 
• Landowner (or sub-lessor) and materially participated in     Production
the operation or management of the farm—instead use 
Schedule F (Form 1040) to report farm income and               Line 1. Report income you received from livestock, 
expenses;                                                      produce, grains, and other crops based on production. 
                                                               Under both the cash and the accrual methods of 
• Landowner (or sub-lessor) and received cash rent for 
                                                               accounting, you must report livestock or crop share 
pasture or farmland based on a flat charge—instead 
                                                               rentals received in the year you convert them into money 
report as income on Schedule E (Form 1040), Part I;
                                                               or its equivalent.
• Estate or trust with rental income and expenses from 
                                                               Lines 2a and 2b. Enter on line 2a your total distributions 
crop and livestock shares—instead report on Schedule E 
                                                               from cooperatives as shown on Form 1099-PATR, 
(Form 1040), Part I; or
                                                               Taxable Distributions Received From Cooperatives. On 
• Partnership or S corporation with rental income and          line 2b, report the taxable amount. See the instructions 
expenses from crop and livestock shares—instead report         for Schedule F (Form 1040), lines 3a and 3b.
on Form 8825.
                                                               Lines 3a and 3b. Enter on line 3a the total agricultural 
Qualified joint ventures.If you and your spouse each           program payments you received. On line 3b, report the 
materially participated as the only members of a jointly       taxable amount. See the instructions for Schedule F 
owned and operated farm rental business, and you filed a       (Form 1040), lines 4a and 4b.
joint return for the tax year, you can make an election to 
                                                               Lines 4a through 4c. Report the full amount of 
be taxed as a qualified joint venture instead of a 
                                                               Commodity Credit Corporation (CCC) loans forfeited, 
partnership. This election in most cases will not increase 
                                                               even if you reported the loan proceeds as income. See 
the total tax owed on the joint return, but it does give 
                                                               the instructions for Schedule F (Form 1040), lines 5a 
each of you credit for social security earnings on which 
                                                               through 5c.
retirement benefits are based and for Medicare coverage 
without filing a partnership return.                           Lines 5a through 5d. In general, you must report crop 
                                                               insurance proceeds in the year you receive them. Federal 
  If you and your spouse make the election and you 
                                                               crop disaster payments are treated as crop insurance 
didn’t materially participate (for self-employment tax 
                                                               proceeds. However, if you use the cash method of 
purposes) in the operation or management of the farm,  
                                                               accounting and 2023 was the year of damage, you can 
but maintained the farm as a rental business, you each 
                                                               elect to include certain proceeds in income for 2023. To 
can file a separate Form 4835 to report your share of farm 
                                                               do this, check the box on line 5c and attach a statement 
rental income based on crops or livestock produced by 
                                                               to your return. See chapter 3 of Pub. 225.
the tenant. If you and your spouse did materially 
participate (for self-employment tax purposes) in the          Generally, if you elect to defer any eligible crop 
operation or management of the farm, you each must file        insurance proceeds, you must defer all such crop 
a separate Schedule F (Form 1040). For an explanation of       insurance proceeds (including federal crop disaster 
                                                               payments).

Form 4835 (2023)                                                                                                      Page 3 

  For details on how to complete lines 5a through 5d, see      Lines 30a through 30g. Enter expenses not listed on 
the instructions for Schedule F (Form 1040), lines 6a          another line. See the instructions for Schedule F (Form 
through 6d.                                                    1040), lines 32a through 32f. If you are required to 
Line 6. Use this line to report income not shown on lines      capitalize expenses, seeHow to report under Capitalizing 
1 through 5d. See the instructions for Schedule F (Form        costs of producing property and acquiring property for 
1040), line 8.                                                 resale on this page.
                                                               Line 31. If you entered capitalized expenses on line 30g, 
Part II. Expenses—Farm Rental Property                         your total expenses on line 31 will equal the total of lines 
Capitalizing costs of producing property and                   8 through 30f reduced by the amount on line 30g.
acquiring property for resale. If you produced real or         Line 32. If line 31 is more than line 7, don’t enter your 
tangible personal property or acquired property for resale,    loss on line 32. If you have a loss, you must apply the    
certain expenses may have to be included in inventory          at-risk rules and the passive activity loss rules. To apply 
costs or capitalized. These expenses include the direct        these rules, follow the instructions for line 34 and the 
costs of the property and the share of any indirect costs      Instructions for Form 8582. After applying these rules, the 
allocable to that property. For details and exceptions, see    amount of your allowable loss may be smaller than the 
Capitalizing costs of producing property and acquiring         amount figured by subtracting line 31 from line 7.
property for resale in the Instructions for Schedule F 
(Form 1040).                                                   • If line 7 is more than line 31 and you don’t have prior 
                                                               year unallowed passive activity losses from this activity, 
  How to report. Do not reduce your expenses on lines 8        subtract line 31 from line 7. The result is your net farm 
through 30f by the expenses you must capitalize. Instead,      rental income.
enter the total amount capitalized in parentheses on line 
30g. On the line to the left of the line 30g entry space,      • If line 7 is more than line 31 and you have prior year 
enter “263A.”                                                  unallowed passive activity losses from this activity, don’t 
                                                               enter your net farm rental income on line 32 until you have 
Line 10. Expenses you paid or incurred for soil and water      figured the amount of prior year unallowed passive 
conservation, prevention of erosion, or endangered             activity losses you may claim this year. Use Form 8582 to 
species recovery can be deducted only if they are              figure the amount of prior year unallowed passive activity 
consistent with a conservation plan approved by the            losses you may include on line 32. If there is a net loss 
Natural Resources Conservation Service of the                  after applying the prior year unallowed loss against the 
Department of Agriculture or a recovery plan approved          net farm rental income, enter zero on line 32 and enter the 
pursuant to the Endangered Species Act of 1973 for the         net loss on line 34c. Indicate that you are including prior 
area in which your land is located. If no plan exists, your    year passive activity losses by entering “PAL” on the 
expenses must be consistent with a plan of a comparable        dotted line to the left of the entry space for line 32.
state agency. Your deduction, however, cannot exceed 
25% of your gross income from farming. See the                 Note: You may need to include information from Form 
instructions for Schedule F (Form 1040), line 12.              4835 on Form 8582 even if you have a net profit. For 
                                                               more information, see the Instructions for Form 8582.
Line 12. Enter your depreciation and section 179 expense 
deduction. For details, including whether you must file        Line 34. To determine your deductible loss, you may 
Form 4562, Depreciation and Amortization, see chapter 7        need to complete Form 8582 regardless of whether you 
of Pub. 225 and the Instructions for Form 4562.                checked box 34a or 34b. However, if you checked box 
                                                               34b, you must complete Form 6198, At-Risk Limitations, 
Lines 19a and 19b. Your interest expense could be              before you complete Form 8582. See the instructions for 
limited. See the Instructions for Form 8990 for more           Schedule F (Form 1040), line 36.
information.
                                                                 Do not complete Form 8582 if either of the following 
  The tax treatment of interest expense differs depending      applies.
on its type. For example, home mortgage interest and 
investment interest are treated differently. You must          • You meet all of the conditions listed under Exception for 
allocate (classify) your interest expense so it is deducted    Certain Rental Real Estate Activities in the Instructions for 
(or capitalized) on the correct line of your tax return and it Schedule E (Form 1040). Instead, enter your deductible 
gets the right tax treatment. These rules could affect how     loss on line 34c and on Schedule E (Form 1040), line 40.
much interest you are allowed to deduct on Form 4835.          • You were a real estate professional (as defined in the 
See the instructions for Schedule F (Form 1040), lines 21a     Instructions for Schedule E (Form 1040)) and you 
and 21b.                                                       materially participated in the operation of this activity 
Line 22a. If you rented or leased vehicles, machinery, or      (under the passive loss rules). See the Instructions for 
equipment, enter on line 22a the business portion of your      Form 8582 for the definition of material participation. Your 
rental cost. But if you leased a vehicle for a term of 30      loss is not subject to the passive activity loss limitations. 
days or more, you may have to reduce your deduction by         Instead, enter your deductible loss on line 34c and on 
an inclusion amount. See Leasing a Car in Pub. 463,            Schedule E (Form 1040), line 40. Also include the loss in 
Travel, Gift, and Car Expenses.                                the total for Schedule E (Form 1040), line 43.