turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Event: Ask the Experts about your refund > RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Depreciation of Fence - Pasture Land Rented Out (Passive Income)

I am renting out pasture land. I do not provide any services. I will report the income and expenses on Schedule E, Part I. It will be classified as passive income.

 

The fence needed to be replaced and cost $6,500. I am planning to report the depreciation on Form 4562, Part III MACRS Depreciation, Section B. I will use the General Depreciation System. When I read Pub 946 fences are listed under 5, 7 and 15 year property classifications.

 

Am I correct in the reporting of depreciation and which property classification 5, 7 or 15 do I use?

 

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

Depreciation of Fence - Pasture Land Rented Out (Passive Income)


@Greenblue wrote:

Am I correct in the reporting of depreciation and which property classification 5, 7 or 15 do I use?


Yes, except farm fences typically have a recovery period of 7 years (residential land improvements, such as fences, are typically 15-year property).

 

However, you can most likely recover the entire $6,500 in the form a special allowance (bonus depreciation) and thus not have to track depreciation deductions (and cumulative depreciation) over several years. 

 

Further, if you input this scenario into TurboTax, you will have to use "Intangibles, Other property", and then select "Other asset type" in order to get to the proper asset class and method.

View solution in original post

2 Replies

Depreciation of Fence - Pasture Land Rented Out (Passive Income)


@Greenblue wrote:

Am I correct in the reporting of depreciation and which property classification 5, 7 or 15 do I use?


Yes, except farm fences typically have a recovery period of 7 years (residential land improvements, such as fences, are typically 15-year property).

 

However, you can most likely recover the entire $6,500 in the form a special allowance (bonus depreciation) and thus not have to track depreciation deductions (and cumulative depreciation) over several years. 

 

Further, if you input this scenario into TurboTax, you will have to use "Intangibles, Other property", and then select "Other asset type" in order to get to the proper asset class and method.

Depreciation of Fence - Pasture Land Rented Out (Passive Income)

Thank you.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies