Farm Land Question

[arlo]

A farm client came in today and ask me if I knew if farm land that was inherited that had field tile already
installed on the property could be allocated as land cost and also field tile cost so that it could be depreciated.
He told me he had purchased land with field tile and made allocation of land cost and field tile. But with inherited
land there is no cost involved. Any thoughts would be appreciated.

[ChEAr$]

A farm client came in today and ask me if I knew if farm land that was inherited that had field tile already
installed on the property could be allocated as land cost and also field tile cost so that it could be depreciated.
He told me he had purchased land with field tile and made allocation of land cost and field tile. But with inherited
land there is no cost involved. Any thoughts would be appreciated.

This sounds similar to standing timber on the land when inherited. If the inheritor immediately call in a timber appraiser, he will cruise the land and come up with a FMV of that timer. This can later be used for basis when timber is sold.

That value of course is then subtracted from the FMV of the entire acreage to determine FMV of the land.

[arlo]

Farm land Question

Thanks Chear$, by the lack of responses it must be a "I don't know question".