Are portable livestock panels classified as a fence for deduction purposes? The panels aren't permanent, but can be moved around and used in different locations.
Yes. Per @GeoffreyG
Your answer would be that how you treat the fence for tax purposes (asset / expense) depends on your continued ownership rights in the fence (or your lack thereof).
Typically, when something in the nature of a permanent fence is installed, it becomes an improvement to the land (like a building or driveway), and is therefore owned by that landowner, as the fence cannot be easily removed and simply transported to another location -- like can farm equipment or portable electric generators, for example.
However, in the case of, say, a contractor who installed the fence and hadn't been paid, and who also had lien rights to the fence until such time as they are paid, this could be classified as a short-term asset (not subject to depreciation) on their financial books.
Similarly, if you installed a fence on a neighbor's property, with their full consent, and they signed some sort of contract or other legal agreement with you that the fence still belongs to you, then this would become a business asset to be capitalized, and depreciated (or to take the Section 179 expensing election). Alternatively, if depreciated and depreciated, fences are considered 7-year MACRS property for tax purposes.
In the absence of any of that, though, it would seem clear that the fence would be legitimately classified as a business expense, if you no longer retain ownership rights to it (and because it is "attached," literally, to land belonging to someone else).
Livestock panels are a heavy gauge galvanized welded wire fencing material. They are also commonly called "cattle","hog", or “sheep” panels. They are almost a must have on any new farm or homestead.
I think we're talking about two different types of livestock panels. I've added a picture this time of what I'm referring to. It is a portable panel designed to be attached together or to something else for temporary use in a location. Then separated and moved to another location/spot. The panels you referenced are used more for permanent enclosures. Because it isn't designed to be permanent, my thoughts are that it would more likely be depreciated in a shorter term than a fence or permanent-type enclosure.
Yes, I have researched several areas and I find no reason where you are unable to claim portable livestock panels as depreciable asset. Assuming if you have a farm,
- Report this as a farm asset
- Enter this as Farm Equipment, Animals, and Agriculture. Agricultural fences are listed in this category.
- Next screen enter farm equipment.
- Next screen enter this as Portable Livestock Gate. Enter the information regarding the gate.
- Continue answering the questions until you have completed the section.
Keep in mind, this is a movable structure that can be moved anywhere on your property and because of it's portability, it is essentially a piece of farm equipment.
[Edited 03-14-2021|08:17 PM PST]
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