We seem to be getting quite a few questions regarding what farm buildings qualify for the 100% bonus deprecation for 2011 (and the period after September 8, 2010). Our latest question is as follows:
For any new farm building placed in service during 2011, all of these buildings will qualify for 100% bonus depreciation since they are considered 20 year property or less for federal income tax purposes. This includes a machine shed, mobile home for employees, hay shed, house owned by a C corporation, etc.
Therefore, any new building on a farm will qualify for 100% bonus depreciation. However, only single purpose agricultural structures such as a hog confinement facility or greenhouse, etc. will also qualify for the Section 179 deduction which means it can be a used building in that case.
Remember, only new farm buildings placed in service between September 9, 2010 and December 31, 2011 qualify for the 100% bonus depreciation.