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Ask the Taxman by Andy Biebl
Andy Biebl DTN Tax Columnist
Wed May 27, 2015 01:13 PM CDT

QUESTION:

On a new purchase of farm land, is it possible to carve out the cost of recent improvements and depreciate them? More specifically, can we depreciate the cost of tile and risers used to drain water collected in terrace channels and the cost of installation of this tile? I see in IRS Pub 225 that field drainage tile qualifies for depreciation. The exact amount of cost might be difficult to determine, but it would seem reasonable to allocate part of the total cost of the land purchased to the tile system. We understand the cost of earth-moving to build ...

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