Question on Farm Asset Section: Fence

[david-r-mullinax]

I am at the farm income section > Farm Asset Summary in TurboTax. I paid $3,000 for fence work last year, which involved tearing down my old fence and putting up a new one.

In the section "Describe This Asset", what category does this fall under?

For now, I'm putting this under "Intangibles, Other property." But I'm not sure.

Farm Equipment, Animals, Agriculture
Tools, Machinery, Equipment, Furniture
Real Estate Property
Intangibles, Other Property

[PatriciaV · Accepted solution]

The cost to replace an existing fence is not an improvement for depreciation. The IRS considers this to be a repair expense. Enter this under Repairs or Other Miscellaneous Expenses using a custom description.

[david-r-mullinax]

Thanks for your help, PatriciaV!

Where do I find the Repairs or Other Miscellaneous Expenses section under the farm income section?

Also in the "Farm Asset" section, TurboTax gives as an example a fence as a depreciable asset.

To see this, create a new asset, then the next page "Describe This Asset" select "Intangibles, Other property."  Then on the next page "Tell Us a Little More" under the option "Land improvements" is lists "Landscaping, pavement, sidewalk, shrubbery, fence."

I haven't submitted my taxes just yet, so I still have time to go in and correct this but I set up my fence as an asset.

[LeticiaF1 · Accepted solution]

To enter this and any other farm expenses:

1. Open your tax return
2. Go to Wages & Income
3. Scroll down to Farm Income and Farm Rental, select Revist
4. Continue until you get to Farm Summary, Edit your farm
5. In the Your Farming Income and Expenses, scroll down to Farm Expenses
6. Here you can select by category or select Visit All to go over all possible expenses

[david-r-mullinax]

I'll remove the asset, and replace the cost under "Enter Farming Expenses > Repairs and Maintenance."  Thanks for your help!

Also it would be great if TurboTax would offer more examples specific to farming activities rather than "replacing broken windows, screens" etc.