Discussion:Form 4835 and 179 deduction
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Discussion Forum Index --> Basic Tax Questions --> Form 4835 and 179 deduction
Discussion Forum Index --> Tax Questions --> Form 4835 and 179 deduction
| 2008-04-12 | |
| Does anyone know if you can take an 179 deduction on Form 4835?? They also have w-2 income. Proseries is letting me, but just seem odd since 4835 is considerded rental. They do have cattle sales on form 4797, if that would make a difference. Thanks, Sharon | |
| 12 April 2008 | |
| Sharon
It is possible to take 179 on form 4835. There are some conditions that must be met. The income must be from cropshares, not cash. The taxpayer can not materially participate in the operation of the farm. There is a 4 step determination of material participation in the Farmers Tax Guide Pub 225 (I don't have the page number). There is also an excellent fact sheet put out by the Ohio State University titled "Tax Issues for Farm Rental Agreements". If you google the fact sheet and look at the material participation area of the Farmers Tax Guide you should be able to come up with the answer for your particular situation. Mark | |
