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The Farm CPA

RSS By: Paul Neiffer, Top Producer

Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.

Less Than Four Months to get New Farm Buildings Finished!

Sep 06, 2011

Farmers who are in the process of constructing new farm buildings or are thinking about it now have less than four months to go if they want to take advantage of 100% bonus depreciation and deduct all of the cost on their 2011 tax return.

Remember, there is no loss limitations on this deduction unlike Section 179 and a net farm loss can be used to offset other income such as wages, interest, rents, etc.

Also, the building must be finished before the end of the year, not simply paid for.  Usually an occupancy permit from the county should be sufficient to show a "in service" status.  If the building is not finished until 2012, then the deduction will occur in 2012 and the it will be limited to 50%, not 100% (unless they change the rules).

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