Farm ground lease for wetlands

[Bjay]

I have a client who has a 99 year lease to a company that is going to make the ground a Wetlands. Can she take any worth of the ground against that income. It is farm ground she normally has income from. Or is there a way to stretch that income out thru several years? Any thoughts are appreciated.

[BHoffman]

I have a client who has a 99 year lease to a company that is going to make the ground a Wetlands. Can she take any worth of the ground against that income. It is farm ground she normally has income from. Or is there a way to stretch that income out thru several years? Any thoughts are appreciated.

That's tricky. It sounds like she is leasing the land to a company who pays her and she doesn't have much room for expenses or deferrals. It sounds like the company leasing the land will get the benefit of any federal and state tax breaks for wetlands. You might want to review Pub 225.