Farm Depreciation Basics

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Course Description

This course covers the MACRS depreciation rules that apply to farm assets, including recovery classes, methods, and conventions for farm equipment and farm structures. Participants will learn to apply the §179 expensing election and bonus depreciation to farming businesses and correctly report depreciation on Schedule F.

Overview

  • ATU Course #: 108
  • Field of Study: Taxes (Technical) 
  • Program Level: Basic 
  • Prerequisites: None. Farm Tax Overview: How the System Works is recommended. 
  • Farm Tax Overview: How the System Works (ATU) is recommended. 
  • Advanced Preparation: None 
  • Delivery Method: QAS Self-Study/On Demand
  • Recommended CPE/CE Credit: 2.0 hours 
  • Final Exam: 10 questions - 70% pass threshold
  • Target Audience: CPAs, Enrolled Agents, tax preparers serving agricultural clients

Learning Objectives

By the end of this course, participants will be able to:

1. Identify the MACRS recovery class and depreciation method for farm assets.

2. Classify farm structures into the correct recovery period.

3. Calculate the §179 deduction available to a farming business.

4. Apply the bonus depreciation rules under IRC §168(k) to farm assets. 

Course Lessons

Course Outline

Meet Your Instructor

Penny Wade Smith EA

Penny Wade Smith is the second-generation owner of Wade Farm Financial Services of Mayfield Kentucky. She specializes in farm and entity bookkeeping and income taxes, as well as tax, estate, succession and retirement planning for farmers.

For more information on your instructor, please visit our About section.

Education Information

  • ATU Course ID Number: ATU-TAX-BAS-SS-2026-005-v1
  • IRS Program Number: QKKWZ-T-00006-26-0
  • NASBA Registry ID Number: 170295 
  • Field of Study: Taxes (NASBA): Federal Tax Topics/Federal Tax Related Matters (IRS)
  • Delivery Method: QAS Self-Study (NASBA): On-Demand (IRS)
  • Publication Date: July 2026
  • Revision/Review Date: July 2026
  • Course Developer: Penny Wade Smith EA
  • Course Reviewer: Paul G. Neiffer CPA

Participants must complete the final exam within one year of purchase.