My state is Virginia.
I received a portion of the 10 year contract payment for the tobacco transition program payment in 2005. I know the full "buyout" is taxable, but I have a few questions I cannot find answers to.
1) Where should I report the "income"?
2) My share of tobacco pounds as a quota owner were inherited by me in 1995. Where/can I report the "basis"?
3) My total buyout for the 10 years is a total of less than $3,000.00. Should I pay taxes on all of it now and get it over with, or should I claim on an installment basis for the next 10 years?
I am sure this amount seems petty. but for a "stay at home" mother of two, this can "hurt" my taxes a lot.
Thanks!!
I received a portion of the 10 year contract payment for the tobacco transition program payment in 2005. I know the full "buyout" is taxable, but I have a few questions I cannot find answers to.
1) Where should I report the "income"?
2) My share of tobacco pounds as a quota owner were inherited by me in 1995. Where/can I report the "basis"?
3) My total buyout for the 10 years is a total of less than $3,000.00. Should I pay taxes on all of it now and get it over with, or should I claim on an installment basis for the next 10 years?
I am sure this amount seems petty. but for a "stay at home" mother of two, this can "hurt" my taxes a lot.
Thanks!!