Changing fencing from expense to depreciation

[Faster horses]

We just learned that the tax laws have changed concerning fencing. After 2013, instead of expensing it, you have to depreciate it...over 5 years or 7, not sure.

The gov't is trying to do the same with the purchase of machinery as well.

I know we are going to buy some posts and wire before midnight, Dec. 31, 2013. I'm glad we found this out and am just passing it along...

 

[Red Barn Angus]

I think fencing materials for repairs are deductible as repairs but brand new fence is supposed to be depreciated. It's been that way for a while. That is what my CPA told me anyway.

 

[Big Swede]

What I heard is that every repair or supplies bought over $500 is now going to have to be depreciated. What a book keeping nightmare that will be. The downward spiral continues. :evil:

 

[S.S.A.P.]

Been basically that way up here for years ... small tools, under 500 are a straight write-off but over are suppose to be depreciated. A club/crew cab truck ... a dually in our case ... only the first $30,000 can be a depreciatable deduction (and GST tax claimed) .... The audit lady said it is a passenger vehicle - therefore only the first $30G works for you. That argument is a work in progress!

 

[nortexsook]

Fence repairs are currently deductible. If it is new or a major reconstruction it must be depreciated, HOWEVER this is generally just semantics as fencing does qualify for the Section 179 election which allows for IMMEDIATE tax deduction of qualified depreciable property. There are income limitations to section 179 expensing, for example, you must have net income from the operation (but a weird twist does allow you or your spouses W2 wages from nonfarm work to be included in setting the limition).


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