Tax Advantages to Buying a Post Frame Building in 2023

Posted July 5, 2023

Section 179 Tax Information

Farmers, this year may be the best time to build your QSI building. Tax laws have changed as to the deductibility of agricultural buildings, and the IRS Website, Publication 225 – the Farmer’s Tax Guide outlines these changes and the specific qualifications.

Beginning 1/1/2023, Section 179 Bonus Depreciation shifted from 100% to 80%, and this bonus depreciation is scheduled to decline 20% each year through 2026. Acting now may save you money! In 2023, the maximum purchases are $1,160,000, and 80% of an asset cost may be written off using bonus depreciation.

1. What farming operations qualify?

A farming business applies if – you cultivate, operate, or manage a farm, and your goal is to generate profit or gains as the owner or tenant.

2. What post frame buildings qualify?

It must be eligible property, which includes purpose-built structures to house, raise, and feed a particular type of livestock and its produce. Also, buildings meant to house the equipment, including any replacements needed to accommodate, raise, or feed the livestock, are also eligible.

We are not offering specific tax advice, and you should speak with your tax advisor for specific deductibility or refer to the IRS Publication 225. Additionally, this bonus depreciation option also applies to improvements on any original general-use farm buildings. A new roof or building liner may apply to existing qualifying post frame structures.

A simple example of what this bonus depreciation may mean to you:

Section 179 Example

Speak with your QSI Salesman today, so you can get your building in service by the end of the year to qualify.

Feel free to check out our online catalog and customer testimonials for a variety of Agricultural building examples!