I have a farmer who prepared his own taxes until this year. He expensed cost of prepoductive plants that would produce 5 years later. My question is, is he considered "elected out of UNICAP" entirely making all assets ineligible for bonus depreciation? I can follow the UNICAP rules from this point on and can use the depreciation at 100% this year, but is it too late?
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These regs are really confusing me, any help would be much appreciated. I have found where you can elect out of UNICAP by expensing but in those years you are subject to ADS and no assets are bonus depreciable. My question is if he's elected out in years past can he elect in now?? -
STILL researching this, any guidance?Comment
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I think I've decided that we need to use UNICAP--I'm understanding from the instructions that I put that on line 32 as a negative amount and then I assume I put it on the depreciation line, this year it's subject to 100% right?Comment
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What research did you do? Did you check TTB, instructions for Sch F, how about trying the IRCBelieve nothing you have not personally researched and verified.Comment
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