Montana Farm and Ranch Risk Management Account
Extracted from PDF file 2018-montana-form-frm.pdf, last modified May 2017
Farm and Ranch Risk Management AccountClear Form MONTANA FRM Rev 08 18 2018 Montana Farm and Ranch Risk Management Account Annual Reporting Information 15-30-3001 through 15-30-3005, MCA First Name and Initial Last Name Social Security Number - - Account Information Grantor Name__________________________________________________________________________________ - Federal Employer Identification No. OR - Social Security No. - Trustee Name__________________________________________________________________________________ Address__________________________________________________ Account Number___________________________________________ Deposits You can make your deposits during the tax year or within 3½ months after the close of the tax year. Date Deposit Date Deposit _______________________ _______________________ ______________________ _____________________ _______________________ _______________________ ______________________ _____________________ _______________________ _______________________ ______________________ _____________________ Total Deposits _____________________ Deduction 1. Net income attributable to your eligible agricultural business............................................. 1._____________________ 2. Enter 20% (0.20) of line 1................................................................................................... 2._____________________ 3. Enter the total amount of the deposits that you have made................................................ 3._____________________ 4. Enter the smaller of line 2 or line 3, but not more than $20,000. This amount is your farm and ranch risk management account deposits that may be excluded from adjusted gross income. Enter this amount on Form 2, Page 4, Montana Subtractions Schedules............................................................ 4._____________________ Distributions Date Total Amount Taxable Amount Nontaxable Amount _______________________ _______________________ ______________________ _____________________ _______________________ _______________________ ______________________ _____________________ _______________________ _______________________ ______________________ _____________________ Total Distributions _______________________ ______________________ _____________________ If you file your Montana tax return electronically, you do not need to mail this form to us unless we ask you for a copy. When you file electronically, you represent that you have retained the required documents in your tax records and will provide them upon the department’s request. Form FRM Instructions An individual or a family farm corporation that has an eligible agricultural business may establish a Montana farm and ranch risk management trust account. Deposits made into this account can be subtracted from their adjusted gross income. However, the amount excludable from adjusted gross income depends on the business’ net income and cannot exceed $20,000. Distributions • Any deposits that are distributed within six months of the date of your deposit are income in the year that you reported the associated deduction. Depending on the timing of the deposit and related distribution, you may need to file an amended return to report the distribution. Eligible agricultural businesses are ones that produce food, feed and fiber commodities and/or raise, grow or produce any of the following for commercial purposes: livestock, poultry, bees, biological control insects, fruits, vegetables and crops (sod, ornamental, nursery, horticultural). Eligible agricultural business also refers to silviculture and the raising of domestic animals and wildlife in domestication or a captive environment. • Your deposits must be distributed within three years. The amounts not distributed within this time frame are considered to have been distributed on the last day of the third year. This distribution is taxable income, and a penalty equal to 10% of the tax due on this amount should be added to the tax on the distribution. • If at any time within the three-year period you become disqualified because you are not engaged in an eligible agricultural business, the entire balance in the trust account is considered to be distributed and must be included in your adjusted gross income in the tax year you became disqualified. This distribution should be reported as an addition to federal adjusted gross income on Form 2, Montana Additions Schedule. Account Information Grantor name and identification number. Provide the legal name and tax identification number of the grantor of the farm and ranch risk management trust. If the grantor is a family farm corporation, provide the name of the corporation as it is registered with the Montana Secretary of State. Trustee. Provide the name and address of the financial institution designated as trustee. Account number. Provide the account number assigned to the trust by the trustee. Deposits • List the date and amount of each deposit that you made for the specific tax year. • You can make your deposits during the tax year or within 3½ months after the close of the tax year. • Your deposits per year cannot exceed the lesser of 20% of your net income attributable to agricultural business, or $20,000. Deduction • Net income attributable to agricultural business is the total net farm income that you reported on your federal Schedule F, net farm rental income that you reported on your federal Form 4835 or the gain from the sale of draft, breeding, dairy or sporting livestock that you reported on your federal Form 4797. • If your deduction is for a family farm corporation, you may only report the amount of net income attributable to agricultural business allocated to you based on your distributive share of the income from the entity. • Your deduction per year cannot exceed the lesser of 20% of your net income attributable to agricultural business, or $20,000. • Because deposits may not exceed the deduction to adjusted gross income allowed for that tax year, there is no carryover provision. Questions? Please call us at (406) 444-6900.
More about the Montana Form FRM Corporate Income Tax TY 2018
We last updated the Farm and Ranch Risk Management Account in March 2019, so this is the latest version of Form FRM, fully updated for tax year 2018. You can download or print current or past-year PDFs of Form FRM directly from TaxFormFinder. You can print other Montana tax forms here.
Other Montana Corporate Income Tax Forms:
|Form Code||Form Name|
|Form MSA||Montana Medical Care Savings Account|
|Form INA-CT||Affidavit of Inactivity for Corporations, Partnerships and Disregarded Entities|
|Form MT-R||Reciprocity Exemption from Withholding for North Dakota residents who work in Montana|
|CIT||Corporate Income Tax Return (formerly CLT-4)|
|Form NOL||Montana Net Operating Loss|
Montana usually releases forms for the current tax year between January and April. We last updated Montana Form FRM from the Department of Revenue in March 2019.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Montana Form FRM
We have a total of eight past-year versions of Form FRM in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
While we do our best to keep our list of Montana Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.