Most of what I have found has tree clearing and dozer work for the preparation of land to be ranched as an expense that needs to be added to the basis of the land. Is there any way to capitalize this and depreciate? No land could stay in a ranching status without annual upkeep of brush hogging etc. (My rationale for trying to expense this). Any Farm preparers out there that depreciate or expense land improvements?
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Have you read IRS Pub 225, Farmer's Tax Guide? Chapter 5. Starting on page 27. Soil and Water Conservation. There are special conditions that must be met such as Plan Certification on page 27, and there is a limit to be deducted based on farm income, and any unused deduction based on the income limit is carried forward each year until used up.
If the land had been previously cleared, you can deduct them land clearing to keep off the brush, etc.Jiggers, EA
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