I purchased an acreage that included 4 grain bins that cost $34,733.00. I rent the bins out and have received income for 2016. Using your software. I selected the Section 179 depreciation expense and it actually reduced my refund. When I selected the three year %200 Declining Deprecation it greatly increased my refund. I don't understand I thought with Section 179 I should have been able to write off the entire expense in the year purchased 2016
To address you questions:
A couple of follow-up questions:
1) Where are you reporting the grain income; Schedule F?
2) What is the income generated from this activity?
This is not considered a farm so I am not reporting the gain on Schedule F. The income generates about $5,000.00
To address you questions: