conservation expenses

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

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

Business Expenses

DaveF1006

Level 15

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

Level 13

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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