conservation expenses

Forum|Forum|6 years ago
February 9, 2020
4 replies
46 views

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

Business Expenses

DaveF1006

Alumni - Intuit

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.

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rondale11Author

Level 2

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

Alumni - Intuit

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.

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