topic Can I depreciate improvements to a Farm Housing asset (Sch F)? in Deductions & credits https://ttlc.intuit.com/community/tax-credits-deductions/discussion/can-i-depreciate-improvements-to-a-farm-housing-asset-sch-f/01/324167#M39804 <P>Working on Sch F. Acquired farm housing asset in 2015 for $7800. Used Sec 179 for deduction. Spent $28,500 in 2016 to improve. What are my options for deducting these expenses?<BR /></P> Mon, 03 Jun 2019 19:20:14 GMT thomas-clarry 2019-06-03T19:20:14Z Can I depreciate improvements to a Farm Housing asset (Sch F)? https://ttlc.intuit.com/community/tax-credits-deductions/discussion/can-i-depreciate-improvements-to-a-farm-housing-asset-sch-f/01/324167#M39804 <P>Working on Sch F. Acquired farm housing asset in 2015 for $7800. Used Sec 179 for deduction. Spent $28,500 in 2016 to improve. What are my options for deducting these expenses?<BR /></P> Mon, 03 Jun 2019 19:20:14 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/can-i-depreciate-improvements-to-a-farm-housing-asset-sch-f/01/324167#M39804 thomas-clarry 2019-06-03T19:20:14Z Great question, I'll be glad to help research it. Is this... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/great-question-i-ll-be-glad-to-help-research-it-is-this/01/324170#M39805 Great question, I'll be glad to help research it. Is this farm laborers tenet housing? Can you describe the building? Does it have a concrete foundation? Wood/stick built housing for long term use or is this a house trailer/manufactured home? Mon, 03 Jun 2019 19:20:15 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/great-question-i-ll-be-glad-to-help-research-it-is-this/01/324170#M39805 Cattlerancher 2019-06-03T19:20:15Z The house is an 80 year old, stick built, wooden farm hou... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/the-house-is-an-80-year-old-stick-built-wooden-farm-hou/01/324175#M39806 The house is an 80 year old, stick built, wooden farm house.&nbsp;&nbsp;The $7800 expense (used Sec 179 on 2015 tax ) was the cost to move the house to our property and place it on a pier foundation.&nbsp;&nbsp;It is not a trailer/manufactured home. It is intended for long term use.&nbsp;&nbsp;Plans include tenet housing and/or a Bread &amp; Breakfast type rental.&nbsp;&nbsp;The $28500 spent in 2016 was for things like electrical rewire and hookup, plumbing redone, new roof, septic system, HVAC, etc. Is "Safe Harbor" option feasible.&nbsp;&nbsp;TurboTax states that one should think carefully about invoking this option because it affects your options going forward and is difficult to reverse. Mon, 03 Jun 2019 19:20:16 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/the-house-is-an-80-year-old-stick-built-wooden-farm-hou/01/324175#M39806 thomas-clarry 2019-06-03T19:20:16Z Cattlerancher, thanks for response.  You stated "The $7,8... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/cattlerancher-thanks-for-response-you-stated-the-7-8/01/324199#M39813 Cattlerancher, thanks for response.&nbsp;&nbsp;You stated "The $7,800 moving cost SHOULD have been applied to the basis of the house along with this $28,500 renovation cost." This sounds like I will have to undo the 2015 Sec 179 deduction for the $7800 moving expense and start depreciation on 2016 return.&nbsp;&nbsp;Is this possible?&nbsp;&nbsp;Is my understanding correct? Can I use the $28500 as the basis for depreciation? Mon, 03 Jun 2019 19:20:17 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/cattlerancher-thanks-for-response-you-stated-the-7-8/01/324199#M39813 thomas-clarry 2019-06-03T19:20:17Z I would amend the 2015 tax return (to retract the Sec 179... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/i-would-amend-the-2015-tax-return-to-retract-the-sec-179/01/324208#M39817 I would amend the 2015 tax return (to retract the Sec 179 $7800 deduction). If you have "placed the house into service" in 2016, I would add the $7800 plus the $28500 together ($36300) as the cost basis to begin depreciation. I highly recommend reviewing this IRS publication 551. I've provided a link below;<BR /><BR />&nbsp;&lt;a rel="nofollow" target="_blank" href="<A href="https://www.irs.gov/pub/irs-pdf/p551.pdf&quot;&gt;https://www.irs.gov/pub/irs-pdf/p551.pdf&lt;/a" target="_blank">https://www.irs.gov/pub/irs-pdf/p551.pdf"&gt;https://www.irs.gov/pub/irs-pdf/p551.pdf&lt;/a</A>&gt; Mon, 03 Jun 2019 19:20:20 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/i-would-amend-the-2015-tax-return-to-retract-the-sec-179/01/324208#M39817 Cattlerancher 2019-06-03T19:20:20Z The De Minimis Safe Harbor Election is not an option here... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/the-de-minimis-safe-harbor-election-is-not-an-option-here/01/324214#M39820 <P>The De Minimis Safe Harbor Election is not an option here&nbsp;as it applies only to assets with a cost basis of $2500 or less.</P><P>The $7,800 moving cost should have been applied to the basis of the house along with this $28,500 renovation cost. Once the home is finished and <B>placed into service </B>as either farm employee housing or as a Bed&nbsp;&amp; Breakfast you can begin depreciating it over a useful life of 27.5 years. Section 179 does not apply. Trailers use a shorter useful life.</P><P><B>House trailers for farm laborers.</B> </P><P>To depreciate a house trailer you supply as housing for those who work on your farm, use the following recovery periods if the house trailer is mobile (it has wheels and a history of movement).</P><P>A 7­ year recovery period under GDS. </P><P>However, if the house trailer is not mobile (its wheels have been removed and permanent utilities and pipes attached to it), use the following recovery periods.</P><P>A 20 ­year recovery period under GDS.<BR /></P> Mon, 03 Jun 2019 19:20:21 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/the-de-minimis-safe-harbor-election-is-not-an-option-here/01/324214#M39820 Cattlerancher 2019-06-03T19:20:21Z
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topic Can I depreciate improvements to a Farm Housing asset (Sch F)? in Deductions & credits
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<P>Working on Sch F. Acquired farm housing asset in 2015 for $7800. Used Sec 179 for deduction. Spent $28,500 in 2016 to improve. What are my options for deducting these expenses?<BR /></P>
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Can I depreciate improvements to a Farm Housing asset (Sch F)?
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https://ttlc.intuit.com/community/tax-credits-deductions/discussion/can-i-depreciate-improvements-to-a-farm-housing-asset-sch-f/01/324167#M39804
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<P>Working on Sch F. Acquired farm housing asset in 2015 for $7800. Used Sec 179 for deduction. Spent $28,500 in 2016 to improve. What are my options for deducting these expenses?<BR /></P>
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Great question, I'll be glad to help research it. Is this...
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Great question, I'll be glad to help research it. Is this farm laborers tenet housing? Can you describe the building? Does it have a concrete foundation? Wood/stick built housing for long term use or is this a house trailer/manufactured home?
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The house is an 80 year old, stick built, wooden farm hou...
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https://ttlc.intuit.com/community/tax-credits-deductions/discussion/the-house-is-an-80-year-old-stick-built-wooden-farm-hou/01/324175#M39806
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The house is an 80 year old, stick built, wooden farm house.&nbsp;&nbsp;The $7800 expense (used Sec 179 on 2015 tax ) was the cost to move the house to our property and place it on a pier foundation.&nbsp;&nbsp;It is not a trailer/manufactured home. It is intended for long term use.&nbsp;&nbsp;Plans include tenet housing and/or a Bread &amp; Breakfast type rental.&nbsp;&nbsp;The $28500 spent in 2016 was for things like electrical rewire and hookup, plumbing redone, new roof, septic system, HVAC, etc. Is "Safe Harbor" option feasible.&nbsp;&nbsp;TurboTax states that one should think carefully about invoking this option because it affects your options going forward and is difficult to reverse.
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https://ttlc.intuit.com/community/tax-credits-deductions/discussion/the-house-is-an-80-year-old-stick-built-wooden-farm-hou/01/324175#M39806
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Cattlerancher, thanks for response.  You stated "The $7,8...
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Cattlerancher, thanks for response.&nbsp;&nbsp;You stated "The $7,800 moving cost SHOULD have been applied to the basis of the house along with this $28,500 renovation cost." This sounds like I will have to undo the 2015 Sec 179 deduction for the $7800 moving expense and start depreciation on 2016 return.&nbsp;&nbsp;Is this possible?&nbsp;&nbsp;Is my understanding correct? Can I use the $28500 as the basis for depreciation?
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I would amend the 2015 tax return (to retract the Sec 179...
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https://ttlc.intuit.com/community/tax-credits-deductions/discussion/i-would-amend-the-2015-tax-return-to-retract-the-sec-179/01/324208#M39817
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I would amend the 2015 tax return (to retract the Sec 179 $7800 deduction). If you have "placed the house into service" in 2016, I would add the $7800 plus the $28500 together ($36300) as the cost basis to begin depreciation. I highly recommend reviewing this IRS publication 551. I've provided a link below;<BR /><BR />&nbsp;&lt;a rel="nofollow" target="_blank" href="<A href="https://www.irs.gov/pub/irs-pdf/p551.pdf&quot;&gt;https://www.irs.gov/pub/irs-pdf/p551.pdf&lt;/a" target="_blank">https://www.irs.gov/pub/irs-pdf/p551.pdf"&gt;https://www.irs.gov/pub/irs-pdf/p551.pdf&lt;/a</A>&gt;
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The De Minimis Safe Harbor Election is not an option here...
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https://ttlc.intuit.com/community/tax-credits-deductions/discussion/the-de-minimis-safe-harbor-election-is-not-an-option-here/01/324214#M39820
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<P>The De Minimis Safe Harbor Election is not an option here&nbsp;as it applies only to assets with a cost basis of $2500 or less.</P><P>The $7,800 moving cost should have been applied to the basis of the house along with this $28,500 renovation cost. Once the home is finished and <B>placed into service </B>as either farm employee housing or as a Bed&nbsp;&amp; Breakfast you can begin depreciating it over a useful life of 27.5 years. Section 179 does not apply. Trailers use a shorter useful life.</P><P><B>House trailers for farm laborers.</B> </P><P>To depreciate a house trailer you supply as housing for those who work on your farm, use the following recovery periods if the house trailer is mobile (it has wheels and a history of movement).</P><P>A 7­ year recovery period under GDS. </P><P>However, if the house trailer is not mobile (its wheels have been removed and permanent utilities and pipes attached to it), use the following recovery periods.</P><P>A 20 ­year recovery period under GDS.<BR /></P>
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