1040 E Farmland/depreciation

Forum|Forum|1 year ago
January 10, 2025
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A trust rents farmland that is tiled and depreciation. If 5 is land and is non depreciable what type of property or how do you indicated farmland with tile being rented? What about amortization as well on that farmland?

AmeliesUncle

If the land has improvements, you enter that improvement as an "asset" for depreciation.

The land itself is not depreciated or amortized. There is no deduction for the farmland itself.

Farmgirl123Author

Thank you!

so you segregate the improvement from the farmland?

So I enter the farmland on 1b as 5.
Where do you enter asset on the 1040e to depreciate? As other on 1b or 8?

AmeliesUncle

@Farmgirl123 wrote:
so you segregate the improvement from the farmland?

So I enter the farmland on 1b as 5.

Where do you enter asset on the 1040e to depreciate? As other on 1b or 8?

Sort of. It is still one rental of land (yes, #5 on line 1b). The tiling is a sub-section of the land rental.

As you continue to go into the questions for that land rental, there will be a section asking for assets or depreciation. You will enter the information there about the tiling.