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| Bonus depreciation is the way to go for a quicker depreciation of the building. The current law is 50% for 2017. It is reduced to 40% in 2018, 30% in 2019 and is set to phase out entirely in 2020.
Trump's new tax plan would make bonus depreciation 100%. If that happens it would be advantageous to wait. If I would have to bet one way or the other I would expect to happen.
You cannot use section 179 on farm shops. They are 20 year depreciation property as multi use structures.
You may also lease the building from a lender. That is also a way of "speeding up" the depreciation of the asset. You would make equal yearly payments to your lender and then depreciate the remainder over the 20 year life after the lease terms are over. The yearly lease payments would be deductible on that particular year's taxes. | |
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Building a Farm Shop...Tax Implications.
