An RV park is a business, not a farm (although a farm is still a business), and not personal property. Land improvements do not qualify for Section 179, but they do for bonus depreciation. Normal depreciation is over 7 years.
Keep in mind that you do not have a business yet. You only have a fence.
Land improvements
What you have is a start-up cost.
Start up costs are those expenses incurred in planning and setting up the business, costs you incur before you open the door.
A portion of startup and organizational costs can be expensed (written off in your first year). The remainder can be amortized (written off over a period of 15 or more years).
Here is how it works:
Expenses paid or incurred after October 22, 2004:
- You can deduct up to $5,000 in startup and $5,000 organizational costs as current expenses if the costs are under $50,000, respectively.
- You can choose to amortize startup and organizational costs greater than $5,000, respectively, (but less than $50,000, respectively) over a period of 15 years.
- If your startup or your organizational costs are more than $50,000, respectively, the excess amount reduces the amount you can deduct.
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Note: A cash-basis business cannot deduct or write off (amortize) these costs until they are actually paid.
