Farm startup expenses

[Anonymous_]

Do you have a question? Please elaborate.

[lindy777]

I had electric and water services installed. What form do I use to deduct these expenses?

[Anonymous_]

Are these startup expenses? Is your farming business operating?

If so, you can deduct the expenses on Schedule F.

[lindy777]

I'm on the page to Describe This Asset.

The choices are:

1) Farm Equipment, Animals, Agriculture

2) Tools, Machinery, Equipment, Furniture

3) Real Estate Property

4) Intangibles, Other Property

None of them really describe Electric and Water hookups. #1 might be the closest.

[Anonymous_]

You can probably expense this rather than adding it as an asset.

[lindy777]

If I go back to the Enter Farming Expenses page and read the Repair and Maintenance instructions, it says:

"If you spent money to enhance your property, restore your property, or adapt your property to a new or different use, then you paid for an improvement, not a repair expense. You deduct the cost of the improvement by depreciating it over a period of time."

Improvements

You paid for an improvement to your property if you spent money to enhance your property, restore your property, or adapt your property to a new or different use.

Examples of improvements include:

- Installation of new plumbing or wiring
- Addition of paneling to a room
- Installation of a fence
- Paving of a driveway
- Installation of new cabinets
- Addition of a new roof
- Assessments for streets, sewers, and sidewalks

Except I don't want to depreciate it over time.

[Anonymous_]

How much did you spend? The expenses may qualify for the de minimis safe harbor.

See https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations#Ad...

[lindy777]

Culvert: $503

Water: $4608

Electric: $3624

Fencing: $3110

Driveway Gravel: $1365