depreciation

[pookypot]

We have farm rental income. We are installing a center pivot which is costing +$200,000. We put a downpayment of $50,000 in 2024. The installation was complete in 2024 however it will not actually be used until 2025. How do we report on my 2024 tax return?

[RobertB4444 · Accepted solution]

For 2024 you won't report anything.  For 2025 you will report the full cost - including that $50,000 down payment - as a depreciable asset as of the first date that the center pivot is placed in service.

@pookypot 

[pookypot]

Thank you, Robert. Can I ask you another question?

[RobertB4444]

Of course.  You get to ask as many questions as you want.  Although I may not always be the one to answer them.

@pookypot