Hello,
My wife's cash crop farming business (not her primary income source) has made a loss for the last two years. As such, we have been asked to complete the mandatory inventory adjustment each year. We have no qualms with this at all.
It is unclear to me how to navigate this form on Turbo Tax as a cash crop farmer for two reasons:
1)
She does not have any "purchased inventory" per se. Her seed/fertilizer/other inputs were all used during the season to grow this year's crop.
She has the majority of this year's crop remaining to sell (in storage) but I would not interpret this as "purchased inventory" - perhaps sometime thinks otherwise?
2)
If the crop in storage is supposed to be interpreted as purchased inventory, it's unclear which boxes we need to fill in on this form and what value to use for the purchase price (perhaps fair value or direct inputs/costs only?).
The form is set up in Turbo Tax in a way which references animals, has 3 columns and references many years, has an additional box below, and it's not clear to me how this all worked together to generate the value for the MIA. There is not much guidance on the form at all, however it has a very material impact on our taxes if you use different values in different boxes so we really want to get this right.
Thank you in advance for your assistance
