Experience F preparers

[S T]

Got me curious also, I don't prepare farmers (only the ones through Farm Mgmt or K-1 forms) So probably not going to be of much assistance, other than "thoughtful suppot"

So all I can do is post what I found which might not be relevant to your situation - so maybe more reading to apply to your T/P situation and maybe I posted something that a prior response did not post or something you have not read yet, or just posted a link that will not really apply.

Not much help - other than some "links"

http://ezinearticles.com/?Unique-Tax-Rules-For-Farmers-and-Ranchers&id=4906828

http://www.taxalmanac.org/index.php/Discussion:Unicap_rules_for_Schedule_F_animal_inventory

http://www.irs.gov/businesses/small/...160015,00.html
http://www.irs.gov/pub/irs-lafa/102602f.pdf

Seems like some of us posters are weak in this area - so would be good if you post back what you actually find and determine - You are somehow i think going to be the "aurthority" on this subject matter, when it is all said and done.

Good Luck, and several of us are here for you.

Sandy

[dan doshan]

Got me googling Farmers and UNICAP. I don't know how anyone not really familiar with such things could even begin to understand just what and how to do it. Have an old Small Business Tax Book at home I just looked at and it has a chart in it on the various allocation of costs. How direct and indirect costs are inventoried. Don't know if the newest version has such.

[dan doshan]

You have probably noticed ... but Pub 225 deals with UNICAP rules for farmers. I looked and the Pub does not explain a great detail but does mention some things and references some other sources. I know I have had only one client that had to use this UNICAP stuff and found some information that more or less detailed or listed what expenses could be currently taken and what had to be capitalized. Unfortunately I do not recall where. Probably in some publication. I suspect current recurring expenses can be taken yearly. As I recall one could take or use section 179. Good Luck.

[Super Mom]

I am not real familiar with this code section. I hope this link to the IRS works. It appears that the t/p can elect out of sec 263A.

http://www.irs.gov/businesses/small/...160015,00.html

Hope this helps

Thanks for trying, they can elect out, however that subjects him to ADS and no bonus depreciation. When I show 263A costs as capitalized, concerned about how that goes on the return, allocating indirect costs, and what method of depreciation, is this subject to bonus?

[WhiteOleander]

My experience with F is practically none. Can some more experienced pros explain to me 263A for farmers as you understand it. Mainly, how do you deprecaite those assets, is it subject to the 100% this year, and how do you alocate other costs like irrigation and fertilizer?
Thanks!!!!!!

I am not real familiar with this code section. I hope this link to the IRS works. It appears that the t/p can elect out of sec 263A.

http://www.irs.gov/businesses/small/...160015,00.html

Hope this helps

[MilTaxEA]

You might want to consider purchasing CPE for farming. NATP has a new Schedule F book they released last year. Looking at the outline, it looks like it address many of the questions you have.

I've been really impressed with the quality of NATPs publications.

[Super Mom]

My experience with F is practically none. Can some more experienced pros explain to me 263A for farmers as you understand it. Mainly, how do you deprecaite those assets, is it subject to the 100% this year, and how do you alocate other costs like irrigation and fertilizer?
Thanks!!!!!!