I paid a $5k deposit for a farm drainage project in September, the system was installed in January, and I then paid the remaining $20k balance. How should I record this?

This is a land improvement depreciable over 15 years. Since it was not placed into service until 2025, thats when the $20k balance would be added as an asset... but what do I do with the $5k?

867

Expert Alumni

Jan 30, 2025 3:36:15 PM

You don't report the $5,000 until you add the asset in TurboTax in the year you put the project into service. You add the $5,000 to the cost of the project.

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I paid a $5k deposit for a farm drainage project in September, the system was installed in January, and I then paid the remaining $20k balance. How should I record this?