Business & farm

Yes. If your wife is using Schedule F for farming activities then you can select 'Other Farm Income' as the category of income.

You are correct and have a good understanding of how both depreciation elections work. The Section 179 does not apply to this farm building and the Special Bonus depreciation must be used for the full amount eligible and you don't get to decide if you only want to use a portion of it.

You must decide based on your facts and circumstances considering what may or may not take place next year.  There are different thoughts by everyone, such as use what you can now and let next year take care of itself; or slow and steady wins the race by allowing a deduction each year assuming the income will be the same or higher. Then again a bird in  the hand is worth two in the bush.  This will all come down your your decision based on your situation.