Farming Business Elected out of 263A

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Message Board Farming Business Elected out of 263A

This topic contains 0 replies, has 1 voice, and was last updated by Aaron Gordon 5 days, 22 hours ago.

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    Aaron Gordon
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    Hello,

    The taxpayer has previously elected out of 263A via the exception for farming businesses. As a result, the taxpayer uses alternative depreciation for property used in the farming business.

    The taxpayer qualifies as a small business taxpayer under the Tax Cuts and Jobs Act. Can the farm business be exempted from 263A as a small business taxpayer (rather than as a farm business), thus no longer required to use alternative depreciation?

    Would they need to file a 3115 to revoke the farming business exemption and another 3115 for the small business taxpayer exception?

    Thank you.