topic conservation expenses in Business & farm

conservation expenses

rondale — Sun, 09 Feb 2020 20:21:07 GMT

Does TurboTax calculate the 25% limitation on conservation expenses on Schedule F?

Re: conservation expenses

DaveF1006 — Sun, 09 Feb 2020 20:40:05 GMT

Yes, Turbo Tax should calculate the limitation on the conservation expenses and then carryover any unused expenses. Please read this Turbo Tax link for further information.

Re: conservation expenses

rondale — Tue, 11 Feb 2020 10:21:16 GMT

Dave

Thanks for the quick reply. My farm income is 40,000 with no livestock sales and TurboTax is allowing me to deduct 13,000 in conservation expenses. I can find no worksheets that show a limitation calculation. Am I entering the info incorrectly?

Re: conservation expenses

DavidS127 — Tue, 11 Feb 2020 14:16:39 GMT

Based on the instructions in the "What are the limitations?" link next to the box where you enter your conservation expenses, you must make a manual calculation of the "25% of gross income" limit yourself.

In other words, TurboTax does not make this limitation calculation and any associated carry-forward. Instead, you must manually calculate the 25% limit based on your income and enter that amount in the Conservation Expenses box.

In addition, you must manually track your carry-forward balance from year to year. To the extent your conservation expenses (including any carry-forward) exceed the 25% limit in 2020, that amount will carry-forward to 2021.

Re: conservation expenses

rondale — Wed, 12 Feb 2020 11:01:59 GMT

I'm sorry, but I do not see the link to the instructions that you reference. I'll just calculate my own limit and keep track of the carryforward. I would think this would be something Turbo
Tax could do just as it tracks Section 179 limits.

Thanks for your help.