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gmcbuick
January 30, 2025
Question

I paid a $5k deposit for a farm drainage project in September, the system was installed in January, and I then paid the remaining $20k balance. How should I record this?

  • January 30, 2025
  • 1 reply
  • 0 views
This is a land improvement depreciable over 15 years. Since it was not placed into service until 2025, thats when the $20k balance would be added as an asset... but what do I do with the $5k?

    1 reply

    T
    ThomasM125
    January 30, 2025

    You don't report the $5,000 until you add the asset in TurboTax in the year you put the project into service. You add the $5,000 to the cost of the project.

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