DavidS127
Expert Alumni

Business & farm

The road is a "land improvement" asset.  As far as deducting the cost, the question is whether you are actually engaged in the business of farming.  If you are, you can depreciate the land improvement.  If you are not (see the section of IRS Publication 225 Not-for-Profit Farming at this link), it is an investment in personal property that increases your "cost basis" in that property.

 

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