What is the class life for a well

[veritas]

on a farm?

Yes I have a farm return to do.

[ChEAr$]

15 years

last time I had one of these.

[outwest]

Land improvement..

15 years. .......

[veritas]

Thanks

........................

[cpadan]

last time I had one of these.

But the accountant in Trentadue v Com thought his grape growers could do it in less.

Cheer up Veritas, they aren't that bad!
Dan

[Black Bart]

S-179

I believe it also qualifies for this.

[cpadan]

I believe it also qualifies for this.

Trentadue v Com makes it very clear that a well is not personal property eligible for Sec 179. The case has a good discussion on the 6 points used to distinguish personal property from land improvements. The court also compared grape trellises to machinery. Very informative reading.

I just read a commentary tonight on the case in the Ag Law Digest, they expect the case tol be upheld in the 9th circuit.
Dan

[veritas]

So

what class life did the farmer get? Mine is a filbert orchard.

[cpadan]

what class life did the farmer get? Mine is a filbert orchard.

7 years for the trellises, same as a wire fence. The case cleared up some questions I had about what qualifes as a fence under asset class 01.1.

A filbert orchard! Frown the frown on your face I thought maybe it was a hog farm.
Dan

[Black Bart]

Funny

Trentadue v Com makes it very clear that a well is not personal property eligible for Sec 179.

how IRS is always after us for "creative accounting" when, in fact, they're pretty good at redefining reality themselves. TvC notwithstanding, a well seems pretty tangible as personal property goes and is certainly an integral part of production, which are a couple of conditions relating to S-179.

It sort of puts you in mind of the auto depreciation method which again requires traded-in cars to stay on your schedule and be depreciated at a crawl instead of becoming part of the basis of your new car -- otherwise the write-off's just too quick for them. It seems to have more to do with money than anything else and I'll bet that if farm water wells weren't so expensive, there wouldn't be much question about what kind of property they are.

[veritas]

7 years for the trellises, same as a wire fence. The case cleared up some questions I had about what qualifes as a fence under asset class 01.1.

A filbert orchard! Frown the frown on your face I thought maybe it was a hog farm.
Dan

If it was a hog farm where the hogs had wheels I would be happy.