I cleared trees from land, improving it for agriculture. Where in Turbotax Home and Business do I enter land improvements on farm?

Forum|Forum|7 years ago
June 1, 2019
1 reply
7 views

My only question is where in Turbo Tax do I enter the capital expense of land clearing? I can see where to enter maintenance like plowing.

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Cattlerancher

Level 7

I don't see anywhere in this IRS publication 225 that refers to the clearing of trees from farm land as a capital improvement. The sale of those trees are farm income, but I believe land clearing of those trees (stump removal) is a farm expense. Similar to clearing rocks from farm land to gain more acres/yield or taxable income. So for example fuel is expensed, rental equipment is expensed, purchased equipment is depreciated. Let me know if you learn anything different.

Here's a link for you to review this Farmers Tax Guide;

https://www.irs.gov/pub/irs-pdf/p225.pdf

ridbusAuthor

Level 2

Thanks, Cattlerancher. However pub 225 on page 24 states "Generally, the costs of the following items, including the costs of material, hired labor, and installation, are capital expenses." The 9th item begins: "9. Land preparation costs, such as: a. Clearing land for farming,"