☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 6, 2019 12:01:34 AM

I have a farm with a loss in 2018. Should be choosing to depreciate, rather than expense, items in the $100-2500 range?

2018 is my first full year with a farm.  It has a loss.  I'm assuming for durable items (assets) >$2,500 I'll depreciate them and for durable items <$100 (e.g. tools) I'll expense them.  It is for things in between that it seems I need to make a decision.  Should I expense or depreciate?  Any guidance on how to make that decision would be appreciate.   I expect overall I'll have a NOL in 2018

0 1 648
1 Best answer
Level 15
Jun 6, 2019 12:01:35 AM

If you don't need the loss today (2018) then depreciate them so you can make better use of the write offs (depreciation) in future years. 

It actually will not be much (items under $2,500) but everything helps and it will also reduce the Self-employment tax income in future years.

1 Replies
Level 15
Jun 6, 2019 12:01:35 AM

If you don't need the loss today (2018) then depreciate them so you can make better use of the write offs (depreciation) in future years. 

It actually will not be much (items under $2,500) but everything helps and it will also reduce the Self-employment tax income in future years.