Special Depreciation Allowance

Forum|Forum|6 years ago
March 10, 2020
1 reply
10 views

Can I elect a 50% allowance versus the standard 100% special depreciation allowance for a farm building I constructed this year (2019)? If so, how do I modify this choice within the turbotax online forms? The system defaults to 100% and I haven't been able to find where to change it.

TurboTax Self Employed Online

ColeenD3

Level 15

What type of farm building? Is it Single Purpose Agricultural? Most buildings are not eligible for special depreciation.

When it comes to single-purpose agricultural structures (SPAS), you would generally qualify for:

a Section 179 deduction of up to $500,000 in 2010 and 2011;
bonus depreciation on the remainder of the cost (for new construction in 2010); and
the net remaining amount being depreciated over 10 years, not 20 years

SPAS are defined as single-purpose livestock structures or single-purpose horticultural structures.

ddesjarAuthor

Level 2

Thanks for the reply. No, it is not a single purpose agricultural building. It is a general purpose garage/storage building.

ColeenD3

Level 15

Unfortunately, you can only take 100% deprecaion for General Purpose.

Certain qualified property acquired after September 27, 2017.

You can take a 100% special depreciation allowance for property acquired and placed in service after September 27, 2017, and before January 1, 2023 (or before January 1, 2024, for certain property with a long production period and for certain aircraft). Your property is qualified property if it meets the following.

It is one of the following types of property.
1. Tangible property depreciated under MACRS with a recovery period of 20 years or less.
2. Water utility property depreciated under MACRS.
3. Computer software defined in and depreciated under section 167(f)(1) of the Internal Revenue Code.
Qualified property can be either new property or certain used property.
It is not excepted property