source:
  type: guide
  id: fnma-sel-b3-3.6-06
  authority: Fannie Mae Selling Guide B3-3.6-06 — Income or Loss Reported on IRS Form
    1040, Schedule F
  description: Fannie Mae Selling Guide B3-3.6-06 — Income or Loss Reported on IRS
    Form 1040, Schedule F.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-3.6-06-full
  canonical_id: fnma-sel-b3-3.6-06-full
  section: Fannie Mae Selling Guide B3-3.6-06 — Income or Loss Reported on IRS Form
    1040, Schedule F
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-3.6-06 — Income or Loss Reported on IRS
      Form 1040, Schedule F
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B3-3.6-06, Income or Loss Reported on IRS Form 1040, Schedule
      F (04/01/2009) Introduction This topic contains information on income or loss
      reported on IRS Form 1040, Schedule F. Income or Loss Reported on IRS Form 1040,
      Schedule F Income or Loss Reported on IRS Form 1040, Schedule F Income received
      from farming is calculated on IRS Form 1040, Schedule F, and transferred to
      IRS Form 1040. Note: Other income on Schedule F may represent income that is
      not obtained from the borrower’s farming operations. The lender may need to
      make certain adjustments to the net income amount that was transferred to IRS
      Form 1040. For example, certain federal agricultural program payments, co-op
      distributions, and insurance or loan proceeds are not fully taxable, so they
      would not be reported on IRS Form 1040. These income sources may or may not
      be stable or continuous and could be a one-time occurrence. If the lender veriﬁes
      that the net income amounts that were transferred to IRS Form 1040 are stable,
      consistent, and continuing, the borrower’s cash ﬂow must be adjusted by the
      nontaxable portion of any recurring income from these sources. Otherwise, the
      income must be deducted from the borrower’s cash ﬂow. The lender can adjust
      the borrower’s cash ﬂow by adding the amount of any deductions the borrower
      claimed on Schedule F for depreciation, amortization, casualty loss, depletion,
      or business use of their home. Recent Related Announcements There are no recently
      issued Announcements related to this topic.'
  judgment: false
