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February 19, 2021
Question

farm depreciation rule 179

  • February 19, 2021
  • 1 reply
  • 0 views

bought 32 acre farm this year put in new tile system for $52000.  wanted to take full depreciation under rule 179.  would not let me.  only allowed 15yr depreciation. what is the issue? 

1 reply

February 19, 2021

I'm not overly familiar with farming, but maybe you could explain what a "tile system" is.  Are you listing it as a "Land Improvement"?

 

Land Improvements would not be eligible for Section 179.  However, in most cases it should be eligible for the Special Depreciation Allowance, which would allow you to take the full cost in one year.  Did you see that option?