Special Depreciation Allowance

Forum|Forum|6 years ago
June 6, 2020
3 replies
33 views

For year 2020 a client has sold multiple tracts of land, not business use. He also has a farm , he has purchased a large piece of equipment. Based on estimates, I don't believe he can 179 expense the equipment, it will take his farm into a loss. Since 179 can't be applied for this year can the Special Depreciation Allowance then be used? Even with this his income and deductions will cause the AMT to apply. I just want to be sure there isn't something I am missing about the application of the SDA.

ProSeries Professional

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Best answer by dkh

@ritastone001 wrote:
Based on estimates, I don't believe he can 179 expense the equipment, it will take his farm into a loss. Since 179 can't be applied for this year can the Special Depreciation Allowance then be used

Is the land sale and Sched F the only income for this client? Sec179 can be allowed against W2 income. Yes SDA can be used if not electing Sec179.

dkhAnswer

Level 15

@ritastone001 wrote:
Based on estimates, I don't believe he can 179 expense the equipment, it will take his farm into a loss. Since 179 can't be applied for this year can the Special Depreciation Allowance then be used

Is the land sale and Sched F the only income for this client? Sec179 can be allowed against W2 income. Yes SDA can be used if not electing Sec179.