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Farm Tax Return

Cataccountant
Level 1

Would Assets such as a truck, combine,  tractor, planter, and farm land purchased within the tax year be a farm expense? 
and would I have to add it as depreciable property ? 
where would I input that in my Farm Tax Return?

0 Cheers
2 Comments 2
sjrcpa
Level 15

Land is not depreciable. The rest of the assets you mentioned are.

IRS has a Publication called something like Tax Guide for Framers. Check it out.


Ex-AllStar
qbteachmt
Level 15

"where would I input that in my Farm Tax Return?"

Spending money is not just Expense. Your client is relying on you to know what applies for their return. Perhaps it would help to find a mentor for this year. Do you know how to determine what is Expense and what is not expense, but expenditure (outlay) for Assets? A lot of the things you listed are different, not the same, and will get different treatment. You need to know (or know how to find) all the details for the differences. In addition to the IRS resources, there are other Web-accessible resources from various county and ag schools and extension agencies that will be helpful to you.

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