topic barn rental on a farm in Get your taxes done using TurboTax

barn rental on a farm

jdayfkin1 — Tue, 29 Aug 2023 12:16:39 GMT

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!

Re: barn rental on a farm

Anonymous_ — Tue, 29 Aug 2023 14:28:43 GMT

You appear to have mixed use property here and it would definitely be optimum for you to consult a local tax professional.

However, the mere rental of structures on the property in exchange for cash, without more, would appear to be properly reported on Schedule E. You may need to report the income/expenses on more than one schedule.

I will page @Mike9241 for input.

Re: barn rental on a farm

Mike9241 — Tue, 29 Aug 2023 15:47:08 GMT

ree, you have a complicated situation, I think its best to consult a tax pro. likley multiple forms and then there is the issue of allcating some of the expenses you incur.