EVERY YEAR MY TAX MAN ENTERED AN EXCLUSION FROM MY FARM TILE'S BEGINNING ACCUMULATED DEPRECIAION FOR SCHED THE RESULT DOES NOT APPEAR ON SCHED E SHOULD I ENTER THE EXCLUSION SOMEWHERE? HOW?

[ColeenD3]

I've seen this question in a couple of different forms and it may help clarify if you explained exactly what this "tile" is. Is it a building improvement? What type of building? Is it a barn, your home, some other farm building? What does the tile do; what is its function?

Is it a land improvement? Land, itself, is not depreciable as it never wears out. 

Land and land improvements do not qualify as section 179 property. Land improvements include swimming pools, paved parking areas, wharves, docks, bridges, and fences. You need to know the useful life and the original basis. You should be able to find this information on your depreciation worksheet from prior years. If you are using Schedule E, see the screenshot

below.

1. 5-year property.

   1. Automobiles, taxis, buses, and trucks.

   2. Any qualified technological equipment.

   3. Office machinery (such as typewriters, calculators, and copiers).

   4. Any property used in research and experimentation.

   5. Breeding cattle and dairy cattle.

   6. Appliances, carpets, furniture, etc., used in a residential rental real estate activity.

   7. Certain geothermal, solar, and wind energy property.

   8. Any machinery equipment (other than any grain bin, cotton ginning asset, fence, or other land improvement) used in a farming business and placed in service after 2017, in tax years ending after 2017. The original use of the property must begin with you after 2017.

2. 7-year property.

   1. Office furniture and fixtures (such as desks, files, and safes).

   2. Used agricultural machinery and equipment placed in service after 2017, grain bins, cotton ginning assets, or fences used in a farming business (but no other land improvements).

   3. Railroad track.

   4. Any property that does not have a class life and has not been designated by law as being in any other class.

   5. Certain motorsports entertainment complex property (defined later) placed in service before January 1, 2021.

   6. Any natural gas gathering line placed in service after April 11, 2005. See Natural gas gathering line and electric transmission property , later.

3. 10-year property.

   1. Vessels, barges, tugs, and similar water transportation equipment.

   2. Any single-purpose agricultural or horticultural structure.

   3. Any tree or vine bearing fruits or nuts.

   4. Qualified small electric meter and qualified smart electric grid system (defined later) placed in service on or after October 3, 2008.

4. 15-year property.

   1. Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, sidewalks, and bridges).

   2. Any retail motor fuels outlet (defined later), such as a convenience store.

   3. Any municipal wastewater treatment plant.

   4. Initial clearing and grading land improvements for gas utility property.

   5. Electric transmission property (that is section 1245 property) used in the transmission at 69 or more kilovolts of electricity placed in service after April 11, 2005. See Natural gas gathering line and electric transmission property , later.

   6. Any natural gas distribution line placed in service after April 11, 2005, and before January 1, 2011.

   7. Any telephone distribution plant and comparable equipment used for 2-way exchange of voice and data communications.

5. 20-year property.

   1. Farm buildings (other than single-purpose agricultural or horticultural structures).

   2. Municipal sewers not classified as 25-year property.

   3. Initial clearing and grading land improvements for electric utility transmission and distribution plants.

6. 25-year property. This class is water utility property, which is either of the following.

   1. Property that is an integral part of the gathering, treatment, or commercial distribution of water, and that, without regard to this provision, would be 20-year property.

   2. Municipal sewers other than property placed in service under a binding contract in effect at all times since June 9, 1996

[bennyb]

THANKS FOR YOUR RESPONSE!  THIS IS LAND DRAIN TILE THAT IS DEPRECIATED OVER 15 YEARS.  DO I NEED TO PUT THIS EXCLUSION SOMEWHERE?  IF SO HOW?

[JamesG1]

Drainage tile is a depreciable asset.

In TurboTax Online Self-Employed, at the screen Your Farming Income and Expenses, scroll down to Farm Assets.  Click Start / Update to the right. 

You want to Add an asset.  I would choose Intangibles, Other Property, then Land Improvements.

At the screen Tell us more about this farm asset, you likely may click I purchased this asset new. 

You may be eligible for a special depreciation allowance or you may elect to depreciate over 15 years useful life.

At the screen Asset Summary, click Show Details to verify that the useful life is 15 years.

The special depreciation allowance or bonus depreciation permits you to 'expense' assets that are new or used.