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Machine Sheds Qualify for 100% Bonus Depreciation Too!

Published on: 17:47PM Jan 19, 2011

We seem to be getting quite a few questions regarding what farm buildings qualify for the 100% bonus deprecation for 2011 (and the period after September 8, 2010).  Our latest question is as follows:

"Is there any bonus depreciation on machine sheds in the year 2011?"

For any new farm building placed in service during 2011, all of these buildings will qualify for 100% bonus depreciation since they are considered 20 year property or less for federal income tax purposes.  This includes a machine shed, mobile home for employees, hay shed, house owned by a C corporation, etc.

Therefore, any new building on a farm will qualify for 100% bonus depreciation.  However, only single purpose agricultural structures such as a hog confinement facility or greenhouse, etc. will also qualify for the Section 179 deduction which means it can be a used building in that case.

Remember, only new farm buildings placed in service between September 9, 2010 and December 31, 2011 qualify for the 100% bonus depreciation.

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