I recently picked up a farming client who has a S Corporation. The old CPA was from a large regional firm and filed the taxes with a Schedule F attached. The revenue from Sch F carried to page one line #5 of the 1120S with a statement "Farm Gross Income (Schedule F, line 9) and the expenses from Sch F carried to the other deduction line on page one of the 1120S with a statement "Total Farm Expenses (Schedule F, line 33).
Is this the correct way to file the return or can I put all gross income on page 1 Line 1 Gross Receipts and the expenses are other deductions/COGS? I haven't seen other farming clients use this format for S Corporations so any advice/literature would be appreciated.