jwright_test
Returning Member

Self-employed

One of the necessary conditions for applying the mandatory inventory adjustment (MIA) is that there be purchased farming inventory on hand at the end of the year.

 

Based on your situation as described there is no purchased inventory, only the unsold harvested crop. Consequently the MIA does not apply to your situation.

 

In the TurboTax interview steps relating to farming income, before arriving at the inventory adjustment input form you refer to, in TurboTax Online Self-Employed edition, there is a panel with the heading “Let’s look at your farming income and expenses” and in TurboTax CD/download edition, there is a similar panel headed “T2042 Farming Profile.” Further on down in either panel, there is a checkbox for “Mandatory or optional inventory adjustment.”  If that box is unchecked, TurboTax will not ask for any MIA information. The MIA box should not be checked if there is no purchased inventory.