Farm Depreciation Question

Home Tax Reduction Farm Depreciation Question

  • Avatar FarMD 
    Status: Physician
    Posts: 1
    Joined: 04/15/2019

    We purchased a 20 acre Macadamia and Longan Farm in Jul 2018. We are submitting taxes for the first time as high income farmers. We were unsuccessful in finding someone locally to help with our taxes, so we are trying on our own. We can’t figure out how to determine the fair market value for our approx 600 longan trees and 200 macadamia nut trees in order to depreciate them.  Any suggestions on how to do this properly? Thanks!

    #206461 Reply
    jfoxcpacfp jfoxcpacfp 
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7794
    Joined: 01/09/2016

    It’s pretty subjective without a professional appraisal. I don’t know how much value or income you are talking about, but it sure might be worth getting one in the first year.

    If you’ve read many of my comments, I am all for DIY when you have a fairly basic situation or you are a high-intel tax geek. This is definitely not a return I would recommend you DIY as a “high income farmer” (or to sign as a DIY).

    Not sure I understand why you are limiting yourself to your geographic area for a professional relationship, but perhaps you do not have internet access where your farm is located and you are posting this from an Internet cafe.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ ~ [email protected]

    #206469 Reply
    Liked by q-school

Reply To: Farm Depreciation Question

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear