Discussion:Farm Conservation Grant

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Discussion Forum Index --> Advanced Tax Questions --> Farm Conservation Grant


Discussion Forum Index --> Tax Questions --> Farm Conservation Grant

Rocket41 (talk|edits) said:

29 March 2008
I have a client who received a large grant to erect a fence on his property for erosion control. The fence is an approved conservation expense for IRS purposes. Must he depreciate the fence? It doesn't seem fair that he would have to report all the income in one year and then spread the expense of the fence over the recovery period. Anyone have any suggestions?

Storm155 (talk|edits) said:

30 March 2008
Is this a farmer?

Is the grant on a 1099G?

If so, I would report the income and 179 the fence.

If not, reduce the cost of the fence by the grant. Any excess is income or 179 expense

Krav (talk|edits) said:

30 March 2008
I don't know how to link to to another discussion - but I had posted a similar question a few weeks ago - try searching for grant to improve barn = the reply pointed me to 179 expensing as it fit under single purpose agriculture structure - or something like that.

Discussion:NY grant to improve barn for farm

related discussion: Discussion:Depreciable basis for cash basis taxpayer

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