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Level 2
posted Feb 23, 2020 4:55:33 PM

Farm structure depreciation

Trying to determine the depreciation term and rate for a farm "structure." 

 

It is a roof over a feed lot for beef cattle. No walls, just two pillars and a roof to shed rain and snow away from the livestock. 

 

The feeder stanchions and cement were depreciated at 7 years at 150% DB but not sure if I can use that same for this.

 

Any suggestions?

 

Thanks.

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1 Best answer
Expert Alumni
Feb 24, 2020 9:44:41 AM

 When it comes to single-purpose agricultural structures (SPAS), you would generally qualify for:

  • a Section 179 deduction of up to $500,000 in 2010 and 2011;
  • bonus depreciation on the remainder of the cost (for new construction in 2010); and
  • the net remaining amount being depreciated over 10 years, not 20 years

SPAS are defined as single-purpose livestock structures or single-purpose horticultural structures.

 

A single-purpose livestock structure is any structure specifically designed, constructed and used (1) for housing, raising and feeding a particular type of livestock and its produce (such as eggs from a chicken), or (2) for housing the equipment necessary for housing, raising and feeding such livestock.

 

SPAS

 

A hog confinement facility, milking parlor, etc., qualifies. A structure that handles more than one type of livestock does not qualify. A building with movable wall partitions that is used to store grain and machinery does not normally qualify for Section 179.

1 Replies
Expert Alumni
Feb 24, 2020 9:44:41 AM

 When it comes to single-purpose agricultural structures (SPAS), you would generally qualify for:

  • a Section 179 deduction of up to $500,000 in 2010 and 2011;
  • bonus depreciation on the remainder of the cost (for new construction in 2010); and
  • the net remaining amount being depreciated over 10 years, not 20 years

SPAS are defined as single-purpose livestock structures or single-purpose horticultural structures.

 

A single-purpose livestock structure is any structure specifically designed, constructed and used (1) for housing, raising and feeding a particular type of livestock and its produce (such as eggs from a chicken), or (2) for housing the equipment necessary for housing, raising and feeding such livestock.

 

SPAS

 

A hog confinement facility, milking parlor, etc., qualifies. A structure that handles more than one type of livestock does not qualify. A building with movable wall partitions that is used to store grain and machinery does not normally qualify for Section 179.