Own an 80 acre farm. Owned farm for 2 years. Has one barn. Rent out the upstairs barn apartment and lower stalls to an individual who keeps their horses there. Rental income is $60K per year. Farm the rest of the land with breeding livestock (cattle, horses). At this point there is minimal farm income. Is this barn rental reported as income on schedule F or elsewhere?
Secondly built another barn during the tax year for about $200K. There is a vacant upstairs apartment and use the lower portion to house livestock. Want to use either section 179 or bonus depreciation for the new barn. Can I do that since barns are depreciable assets for 20 years and would qualify for bonus depreciation if I can do that. What happens if I rent the upstairs barn either as short or long term rental? Thanks!
