Renting out farm land?

[threeway]

If a person rents out your property with a farm lease to plant acreage, do you get taxed with rental property? Are you nicked with extra taxes besides the one you are showing you are receiving for the lease? First time renting out land, just checking with you guys who have done all this. Just want to cover my bases before leasing out the property. Dont want any surprises next tax season! Thanks for the replies....

[XRap]

I'm not an accountant but here is what I have done -

I have rented field property for several years under an agricultural classification. I assume that this is the current classification for your property?!

The taxes on my property don't change but the rent monies I receive need to be reported as income.

The benefits are two fold:

1)Income

2) Where I am located, if the land isn't worked, the County can reclassify the property from Ag to Residential and then, "Skippideedoodah" skyrocketing taxes.

[ac777]

Three way, what county are you in? And I agree with Xrap, I think it just counts as income.

[threeway]

It is classified as ag land. Located in Ottertail County.

[someday]

You should get a 1099 from your renter next January. If you get the income now you might have to prepay the Fed. and State income tax to avoid paying a penalty next April.