conservation expenses

[rondale]

Does TurboTax calculate the 25% limitation on conservation expenses on Schedule F?

[DaveF1006]

Yes, Turbo Tax should calculate the limitation on the conservation expenses and then carryover any unused expenses.  Please read this Turbo Tax link for further information.

[rondale]

Dave

Thanks for the quick reply.  My farm income is 40,000 with no livestock sales and TurboTax is allowing me to deduct 13,000 in conservation expenses.  I can find no worksheets that show a limitation calculation.  Am I entering the info incorrectly?

[DavidS127]

Based on the instructions in the "What are the limitations?" link next to the box where you enter your conservation expenses, you must make a manual calculation of the "25% of gross income" limit yourself. 

In other words, TurboTax does not make this limitation calculation and any associated carry-forward.  Instead, you must manually calculate the 25% limit based on your income and enter that amount in the Conservation Expenses box.

In addition, you must manually track your carry-forward balance from year to year.  To the extent your conservation expenses (including any carry-forward) exceed the 25% limit in 2020, that amount will carry-forward to 2021.

[rondale]

I'm sorry, but I do not see the link to the instructions that you reference.  I'll just calculate my own limit and keep track of the carryforward.  I would think this would be something Turbo
Tax could do just as it tracks Section 179 limits.

Thanks for your help.