Can I change the "Years to fully depreciate" an asset?

[kadaan]

TurboTax is choosing 7 years to depreciate my farm's tractor but it should be 5 years (according to Table 7.1 in Publication 225 (2019), Farmer's Tax Guide)

[Anonymous_]

Did you enter the tractor as an asset in the Farm Assets section of the program or the Farm Vehicles section?

[kadaan]

I entered it under Farm Assets -> Farm Equipment, Animals, Agriculture -> Farm Equipment, because that is where TurboTax lists Tractors (not over the road).  That caused the Years to fully depreciate to be set to 7.  If, on the other hand, if I choose Farm Assets -> Tools, Machinery, Equipment, Furniture -> Construction machinery and tools then it will correctly set the Years to fully depreciate to be set to 5.

[Carl]

There's another alternative that will allow you to correctly classify the asset, and still depreciate over 5 years instead of 7.

On the screen for "Describe this Asset" select Intangibles, Other Property and continue.

Then select Other Asset Type and continue.

Now enter the property description (something like off-the-road tractor I would presume) along with it's cost and the purchase date, and continue.

Now select "purchased new" and "used 100% for business" (I presume that to be correct) , enter the date you started using the tractor in your farming business, and continue.

Set the asset class to 5-year and continue.

Select the depreciation method and continue. ( don't know off hand the method for a tractor. I assume you do)

This if appropriate, select NO to indicate this asset does not qualify as listed property.

I think you can take it from there.

[Anonymous_]

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@kadaan wrote:

I entered it under Farm Assets -> Farm Equipment, Animals, Agriculture -> Farm Equipment, because that is where TurboTax lists Tractors (not over the road). 

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I am entering an asset in exactly that same section on a test return and I am getting 5 year depreciation. 

Are you clicking the "Yes"  button for the question that addresses "some types of farm equipment are not eligible for the special 5 year depreciation of farm machinery and equipment"?

[Anonymous]

USE E2 Qualified farm machinery/equipment.  5 years only applies if placed into service after 2017 and original farm use was after 2017.

[kadaan]

Nice!  This seems like a good option.  Thanks!

[Anonymous]

it's actually the correct option in TT this 5 years also applies to other farm machinery and equipment with the same requirements  - acquired after 2017 first use after 2017 for farming.  by the way bonus depreciation, unless you elect out or the property doesn't qualify, should allow you to fully depreciate the tractor in 2019. bonus depreciation may be better than section 179 because there is no recapture should it be disposed of before the end of its useful life (2024)