Question on Farm Asset Section: Fence

Forum|Forum|2 years ago
April 6, 2024
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I am at the farm income section > Farm Asset Summary in TurboTax. I paid $3,000 for fence work last year, which involved tearing down my old fence and putting up a new one.

In the section "Describe This Asset", what category does this fall under?

For now, I'm putting this under "Intangibles, Other property." But I'm not sure.

Farm Equipment, Animals, Agriculture
Tools, Machinery, Equipment, Furniture
Real Estate Property
Intangibles, Other Property

Best answer by PatriciaV

The cost to replace an existing fence is not an improvement for depreciation. The IRS considers this to be a repair expense. Enter this under Repairs or Other Miscellaneous Expenses using a custom description.

PatriciaVAnswer

Employee

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david-r-mullinaxAuthor

Thanks for your help, PatriciaV!

Where do I find the Repairs or Other Miscellaneous Expenses section under the farm income section?

Also in the "Farm Asset" section, TurboTax gives as an example a fence as a depreciable asset.

To see this, create a new asset, then the next page "Describe This Asset" select "Intangibles, Other property." Then on the next page "Tell Us a Little More" under the option "Land improvements" is lists "Landscaping, pavement, sidewalk, shrubbery, fence."

I haven't submitted my taxes just yet, so I still have time to go in and correct this but I set up my fence as an asset.

LeticiaF1

To enter this and any other farm expenses:

Open your tax return
Go to Wages & Income
Scroll down to Farm Income and Farm Rental, select Revist
Continue until you get to Farm Summary, Edit your farm
In the Your Farming Income and Expenses, scroll down to Farm Expenses
Here you can select by category or select Visit All to go over all possible expenses