Farm Auction - Depreciation Recap

[jasdlm]

Taxpayer was divorced early last year.  In 2004, Taxpayer inherited a farm.  TP's ex borrowed against the farm (to the tune of $400k) to fund his own business ventures, which were not very fruitful.  In the divorce, TP received the farm and all the equipment, but also all of Ex's debt against the same.  It's arguable that the debt is more than the farm ground is worth.

Taxpayer had a farm auction in 2017 and sold all farm equipment possible to try and pay down debt against the land.  Much of the debt is a line of credit, so payment obligations are substantial.  I have a list of assets that comes NO WHERE CLOSE to matching the depreciation schedule.  Many of the items on the depreciation schedule are form 2004-2008, and I'm sure are not all accurate.  

I feel like my only option is to set a bulk sale against all of the 1045 property on the depreciation schedule, which is resulting in a gain from depreciation recap of tens of thousands of dollars.

Please tell me I'm missing something that could help this person.  She is reviewing the depreciation schedule carefully, but I'm not sure how much that will help anything.

Thanks in advance.  I feel like this person got a raw deal during the divorce settlement proceedings.

[DANRVAN]

Well first of all extension until you get time to sort this out.  You are doubting depreciation schedules, so is this client new to you?  Offhand I can't think of anything your missing, but then again it's past my bedtime.  How about schedule J, farm income averaging?  The sale of farm equipment qualifies as elected farm income. 

Schedule J helps if taxpayer was in lower tax bracket in 3 previous years.

[schirallicpa]

I have tried the bulk disposition before and was not thinking it was working quite right.  I feel more confident doing it out on paper and overwriting.