Factors in Transferring a Single Purpose Agricultural Structure Under the American Tax Payer Relief Act of 2012 and the Accounting Standards Codification of 2009

摘要

Transferring a commercial structure is a common event, but the type of structure transferred can have a major impact on its treatment for financial reporting and tax reporting purposes. One type of structure that receives special treatment is a "single purpose agricultural structure" such as a hog breeding barn, a dairy barn, a chicken house, or a greenhouse. The paper examines areas of difference between financial accounting and tax accounting for such a building in light of the Accounting Standards Codification of 2009 and the American Taxpayer Relief Act of 2012, signed by President Obama in January 2013. This Act continues to allow the buyer of such a building to realize large tax savings in the expensing and depreciation limits provided under the Act. An understanding of the reporting techniques described in this paper will enable an accountant to provide better service when assisting a client involved in either the purchase or sale of a single purpose agricultural structure.