[barelystayingsane]

On the third question of the second simulation in Becker R1, it asks if state estimated tax payments on farm earnings are deducted on Schedule F, elsewhere on the return, or nowhere on the return. I said on Schedule F, because Line 29 of Schedule F is for deductible taxes. Becker said that state taxes should actually be deducted on Schedule A.

So for farming income, you deduct state and local taxes on Schedule A (not Schedule F), but for any other company/sole proprietorship income, you deduct state and local taxes on Schedule C? Why do farming state taxes go to Schedule A, but other company state taxes don’t? That seems kinda odd to me.

[SeattleAccountant]

Actually, treatment is identical! For both sole-proprietorship (filing sch C) or farming business (filing sch F), business owner reports state/local income taxes on sch A.

Very important to distinguish state & local INCOME tax from state & local BUSINESS tax.

Income taxes are reported on sch A while business tax (other) is on sch C/sch F.

For example, various city taxes and licenses get deducted on line 23 sch C.

Hope that helps 😉

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[barelystayingsane]

Gahhh I am so screwed for this exam. The minutiae is killing me. I only have a week until the exam, and I feel like this should be a time for reviewing, and instead new things keep popping up. Getting really discouraged… Thanks for clarifying that for me!

[jrosen92770]

Mattz13. I recently took BEC and felt the same way you did. Towards the end, like a few days before, I stopped doing questions so I would not hurt my confidence. I came to conclusion that I know what I know.

A few days before the exam, I started mentally preparing for exam day. For instance what I would eat the night before, what time I was going to leave, what I would do that morning (went for a jog a listened to relaxation music), what I would eat in order to avoid losing brain power. All of those things I think really helped me pass.

Good luck on the exam.

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Author]

Replies