Farm Depreciation Schedule

[jasdlm]

Entering a Farm Depreciation Schedule for a new client.  65 Assets.  All placed in service over the last 10 years.  Almost all range in cost from $5 (not a typo) to $99.  WTH?  Charging by the line?  I realize the de minimum election does not go back 10 years, but have you all been depreciating $5 purchases?

Hugs to the prior preparer.  I am really enjoying entering this line by line on April 5th.

 

[rfassett]

I would have probably ten lines. Line one: year xxxx additions - see schedule in file. And so on and so forth.

And then after tax season, just for grins, have your farmer client review those 65 items and have him tell you which ones he still has. My guess is that you will be deleting a bunch of those from next year's return. Of course, that comment assumes that you do not want to extend this return and make it right this year.

[jasdlm]

6 minutes ago, rfassett said:

I would have probably ten lines. Line one: year xxxx additions - see schedule in file. And so on and so forth.

And then after tax season, just for grins, have your farmer client review those 65 items and have him tell you which ones he still has. My guess is that you will be deleting a bunch of those from next year's return. Of course, that comment assumes that you do not want to extend this return and make it right this year.

The really great thing is, probably half of them say 'equipment' - that's it!  I'm sure the client will know exactly what $5 piece of equipment was purchased in September of 2007!

[Lee B]

If we're going to be creative, then this would be the perfect time to file a 3115 and expense all of the undepreciated asset balances in the current year.