How do I find out if I can deduct for a tractor purchased in 2017? I started out using Deluxe, and upgraded to self-employed but it will not let me enter expenses.

[smoore-treeoflif]

Can I deduct for a tractor purchased in 2017 if there is no offsetting farm income for that year? If so, how do I switch from deluxe to self-employed, and then enter the expenes

[CathiM · Accepted solution]

Answer Yes that you Did have Farm Income to get you to the screen where you enter your tractor purchase and other expenses. You don't have to enter income.  As long as you did begin farming in 2017, you can claim expenses even if you had no income. You may not want to take Section 179 or Special Allowance depreciation since you did not have any income yet. You can spread the deprecation out over 7 years.

1. On the Farm Summary screen,

• If this is your first time working in this section: You’ll have to answer some  questions and set up the farm
• If  you have already entered some information about your farm:
• Select Edit next to your Farm Name
• Scroll down to Farm Assets and click on Start
• Answer Yes to Do you Have Any Assets? Continue through the next two screens answering the questions
• On describe this Asset Choose Farm Equipment and Continue
• Follow the screens to enter the information about your tractor and other expenses