Section 179 on field tile

David G · Jul 19, 2020

I have some extra cash from rent that I did not collect for a few years, but it got paid out of the estate when my friend died. I would like to put some of that into field tile and am wondering if I can 179 than and take the deduction this year. This is a bad tax year for me with selling my business and will be light next year, so really do not want to take 15 year on it.

Bob Bancroft · Jul 19, 2020

I "expense" many things. As far as I'm concerned, multi year depreciation is for something paid for over multiple years.

4520BW · Jul 19, 2020

In indiana you can deprecate field tile. Not sure how it work, my account does all the smart stuff! Tile is one of the best investments you can make.

NY 986 · Jul 19, 2020

Unless it was a real small quantity we always depreciated it.

kencombs · Jul 20, 2020

Doesn't speak specifically to land improvements, but here is a lot of good info on 179 deductions.

I'll bet different accountants may differ in the interpretation, unless there has been an official determination for field tile or other land improvements vs building improvements.

https://bench.co/blog/tax-tips/section-179-deduction/

Bill VA · Jul 20, 2020

Talk to your accountant. We use 179, but I’ve got an accountant guiding me all the way.

Also, if you’re so inclined and you need a farm building and one year depreciation, look at IRS section 168(k) I believe is the place. As was explained to me, you can write off farm buildings in one year that would otherwise be depreciated over 20. This was a change made a few years ago with some of the tax cuts. Again, you need a good accountant to advise.

Good luck,
Bill

SHALER · Jul 20, 2020

Kind of an interesting question. I tried to do a little research on your behalf. I suppose we may see if anyone else agrees with me. The short answer to your question may be NO because it is a land improvement. However, there is something called BONUS DEPRECIATION that is part of the "nnalert tax Cuts" that will allow you to take the deduction for your drain tile this year. So you may get a tax break, just wont be Sect. 179. And honestly, if you live in an area where there are tax preparers doing farm tax returns, anyone should be able to give you a definitive answer for free or a very nominal amount.

Section 179 on field tile

David G

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Bob Bancroft

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4520BW

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NY 986

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kencombs

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Bill VA

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SHALER

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