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FSA question---Income for direct payments
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jakescia
Posted 1/26/2010 14:39 (#1042499 - in reply to #1042115)
Subject: RE: FSA question---Income for direct payments



Oskaloosa, Iowa 52577

FSA personnel told me-----------greater than 750K net farm income, and greater than 500K non-farm income.

I asked specifically the question of whether or not that was a "modified adjusted gross income"-------ie "modified" from the "standard" AGI that is on 1040..........they said it was not a recalculated, modified adjusted gross.

I said--------and therefore, if a guy has a NET farm income of 850,000.......and takes a 150,000 Section 179 expense.........dropping the NET farm income to 700K, then there is no limitations-------------person said that I was correct------no limitations.

If I were approaching those limits..........I would be reading the law, or getting a letter from FSA describing exactly my situation, before I relied on the "hearsay".

For example...........USUALLY......when a reference is made to a document other than the FSA document, there is a modifying calculation..........so I would wonder if there is not further delineation if using tax return data.

 

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