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QUESTION DETAIL
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I have a farm client that has a large capital gain from sale of land, approx $500,000. He has a continuing farm operation with a current loss of $103,000. He has purchased new equipment this year of approx $90,000. The business income limitation seems to be limiting the Section 179 expense. Are there any other ways to take a large amount of depreciation on this new equipment?
ANSWER
The BIDaWIZ Team's Answer:
If you claim the 50% bonus depreciation election, then you will still be able to depreciate the property even though the business reports a loss. Unlike a Section 179 election, bonus depreciation can be claimed even when a business reports a loss.
