carry over depreciation business deduction for equipment used in farming not showing up on Schedule F is instead showing up on form 4835. Last year I was eligible to file a 4835 but that changed for 2016 and farm rental is now a flat amount. How do I transfer the carry over depreciation deduction to Schedule F as I am both farming and renting farmland.
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Sure. Start by clicking on the Business tab in the top header bar, Continue, I'll choose what I work on, scroll down to Farm Rental Income and Expenses, click Start or Update. Read carefully, many people mix these two up. Next page, be sure to click the box, I received a share of the crop production from my farm rental. (whether you actually did or not)
From what you said, it sounds like you are now renting some farm land for a fixed amount paid in cash (not shares of the crop) and now farming some of the land yourself. You previously filed a Farm Rental (form 4835) and need to transfer your current depreciating assets to both, Farm Income (schedule F) and possibly Rental Property Income (schedule E) and stop filing a Farm Rental (form 4835).
This needs to be done manually. Using your Depreciation Report from Farm Rental (form 4835), enter the assets used in your farm into the Farm Income and Expense Section. Enter the assets used in your rental into the Rental Property section. You may need to use farm recovery periods not preselected in the Rental Property section, if so you can always use "other".
To close your Farm Rental (form 4835) you will need to report that you have "sold or otherwise disposed of this Farm Rental Property in 2016". After you have transferred/manually entered the assets to their respectful businesses you will need to Edit each asset in this Farm Rental to report how you have disposed of them. All you need to report is you disposed them for (leave blank) dollars (no sale price added). This will remove them for next year and TurboTax will not ask you each year about your Farm Rental.
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