Depreciation on mature trees

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If you elect not to apply the uniform capitalization rules to any plant produced in your farming business, you must use ADS. This does not include the cost of purchasing or leasing land, or expenditure on draining swamp or low-lying land or on clearing the land. Water facilities Fencing From 7. The trees were originally entered as one line item " Nut Trees" with a cost for the whole group of trees. Be clear and state the answer right up front.

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I depreciated the trees for something like 40 yrs as that was the expected useful life of the trees.

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Look for ways to eliminate uncertainty by anticipating people's concerns. Break information down into a numbered or bulleted list and highlight the most important details in bold. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link. Select a file to attach: We do that with the style and format of our responses. Operating a nursery or sod farm.

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