starting a hazelnut orchard

[nwtaxlady]

My client is starting a hazelnut orchard. They bought 550 small trees for $3060. Do they get depreciated over 10 yrs @ 150%? And on SCH F?

Any help would be appreciated. They are just starting so I want to get it all set up right.

Thanks!

[Lion]

Don't know about nut trees, but the IRS publishes a great Farmer's Tax Guide pub. 225.

[Roland Slugg]

Do they get depreciated over 10 yrs @ 150%? And on SCH F?

Yes for the 10-year class life (Code §168(e)(3)(D)(ii)), but no to the 150% method. They must be depreciated using the straight-line method (Code §168(b)(3)(E)). Since the growing, harvesting and selling of nuts is a farming activity, everything related to that business would properly be reported on Schedule F.

I knew nothing about hazelnuts, except that they are also known as filberts, so I went to Wikipedia and read the entry there. Was interesting, especially the section on "harvesting." It was also surprising to learn that (in 2014) nearly two-thirds of worldwide hazelnut production was in Turkey.

[nwtaxlady]

Trees planted in 2017

I asked about this last year. And since they weren't planted yet, just held it over.
So the 550 trees got planted in Spring 2017. They are amortized SL over 10 years?
And on a Sch F?

So my question now is... The clients already has a Sch F for cattle/beef. They raise and sell a few every year. So would I use the same Sch F or start a New Sch F for the Hazelnut trees? Right now it's all expenses and what do I do with all the expenses?

Thanks

[nwtaxlady]

Same Sch F or do a seperate Sch F for hazelnuts trees?

I asked about this last year. And since they weren't planted yet, just held it over.
So the 550 trees got planted in Spring 2017. They are amortized SL over 10 years?
And on a Sch F?

So my question now is... The clients already has a Sch F for cattle/beef. They raise and sell a few every year. So would I use the same Sch F or start a New Sch F for the Hazelnut trees? Right now it's all expenses and what do I do with all the expenses?

Thanks

Do I put on the same Sch F as the cattle/beef or start a new F for Hazelnut trees?

Need help please!

[TaxGuyBill]

I most cases, I don't think it matters too much ....

If the taxpayer is treating it as a separate business, with separate record-keeping, it should probably go on a separate Schedule F. Otherwise, it could probably all go on on Schedule F.