Includes: New tractors, combines, planters and other farm machinery. Watch: Used farm machinery, grain bins and fences are 7-year property. Since 2018 farm machinery may use 200% declining balance; 150% still applies to 15- and 20-year farm property (Pub 946, Depreciation Methods for Farm Property).
Work out your own
Deduction in 2026$120,000.00
Section 179$0.00
Bonus$120,000.00
Regular MACRS, year 1$0.00
Form 4562
Line 12 · Section 179 expense
$0.00
Line 14 · Special (bonus) depreciation, 100%
$120,000.00
Line 19 · MACRS, 5-year property
$0.00
Basis = cost × business use · bonus = (basis − §179) × bonus rate · each year = (basis − §179 − bonus) × table rate
IRS Pub 946 tables · §179 and bonus per the One Big Beautiful Bill Act · car limits per §280F and the IRS yearly revenue procedure.
$120,000 of farm machinery, year by year
Placed in service March 2026, 100% business use, no section 179 or bonus.
Tax year
Depreciation
2026
$24,000
2027
$38,400
2028
$23,040
2029
$13,824
2030
$13,824
2031
$6,912
Source: Pub 946 chapter 4, 5-year property item i: machinery or equipment used in farming, placed in service after 2017 with original use beginning with you; used farm machinery, grain bins, cotton ginning assets and fences are 7-year property (ADS 10, asset class 01.1). IRS Publication 946.
Frequently asked questions
What is the depreciation life of farm machinery?
Farm machinery and equipment are 5-year property under MACRS (the General Depreciation System), depreciated with 200% declining balance, half-year. Under the Alternative Depreciation System the period is 10 years. Source: Pub 946 chapter 4, 5-year property item i: machinery or equipment used in farming, placed in service after 2017 with original use beginning with you; used farm machinery, grain bins, cotton ginning assets and fences are 7-year property (ADS 10, asset class 01.1).
Can I write off farm machinery in one year?
Section 179 lets you deduct up to $2,560,000 in 2026 (reduced above $4,090,000 of purchases), as long as the business has the income. Bonus depreciation is 100% for property acquired after January 19, 2025, under the One Big Beautiful Bill Act.
How much depreciation is $120,000 of farm machinery each year?
With no section 179 or bonus, placed in service in March 2026: $24,000 in 2026, $38,400 in 2027, $23,040 in 2028, $13,824 in 2029, and so on. The calculator above works it out for your own cost, date and business use.
Anything that changes the answer for farm machinery and equipment?
Used farm machinery, grain bins and fences are 7-year property. Since 2018 farm machinery may use 200% declining balance; 150% still applies to 15- and 20-year farm property (Pub 946, Depreciation Methods for Farm Property).