The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/ok-with-the-additional-info-that-this-is-going-30543282.aspx

Subject:  Re: bought forest property Date:  2/14/2013  8:15 PM
Author:  ptheland Number:  117771 of 121223

OK - with the additional info that this is going to be personal use property

1) can I depreciate this land.

No. Land cannot be depreciated.

2) I pretty sure I can depreciate or expense the improvements. things like seeds, soil, trees, etc...

Not exactly. They'd get added to the cost of the land. You eventually benefit from these costs when you sell the land.

3) do I add the cost of purchase for the lawyer and closing costs into the cost of the land?

Yes.

4) I have a 10 year forestry plan cost $475 do I expense this for 10 years or just write it off at one year.

Neither. That is another addition to the cost of the land.

any publications that would be much help would be appreciated?

Pub 551 would help with determining your basis in the land.

I have 4 deer on the land. one of my friends said they were dependents.

My standing agreement with clients is that if they can get a social security number for their animal, I'll put 'em on the return as a dependent. ;-)

--Peter
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us