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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15203
Experience:  15years with H & R Block. Divisional leader, Instructor
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Is there any way a ranch can take land purchased as a

Customer Question

is there any way a ranch can take land purchased as a deduction on the ranch's income taxes.
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.


Repairs, maintenance of buildings and tools, cost of fertilizers and lime, land clearing, preparation for planting, erosion control: Money spent for any of these expenses may be deducted by a ranch.

The cost of the land itself is not a deduction but

  1. The treatment or movement of earth, such as:

    1. Leveling,

    2. Conditioning,

    3. Grading,

    4. Terracing,

    5. Contour furrowing, and

    6. Restoration of soil fertility.

  2. The construction, control, and protection of:

    1. Diversion channels,

    2. Drainage ditches,

    3. Irrigation ditches,

    4. Earthen dams, and

    5. Watercourses, outlets, and ponds.

  3. The eradication of brush.

  4. The planting of windbreaks.

These above are costs that can be used. The land cost is basis and comes into play if you sell.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.