What is a Farm Building?
We had a reader ask the following question:
“WHICH BUILDINGS ON A FARM QUALIFY AS AG SPECIFIC BUILDINGS OR STRUCTURES FOR THE BONUS DEPRECIATION, IS THERE A LIST SOMEWHERE.”
The law basically says that all farm buildings other than single purpose agricultural or horticultural structures are 20-year property and available for the 100% bonus depreciation. This would include hay sheds, machine shops, etc.
There is not a list, however, since single purpose structures automatically qualify for 100% bonus depreciation, all farm buildings will qualify for bonus depreciation (other than your house, etc.)
Therefore, the bottom line is that any NEW farm related building on your farm will be available for 100% write off during 2011.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
Is it for any 20 year property? What about fencing for new livestock pastures?
Thanks