HI Rick (Champ),
Thank you so much for the time and effort in your response. I really appreciate it. The non-deductible effort was I cleared the land, turned the soil, planted clover for 2 years, then planted 200 grape vines. Through 10 more years, I pruned, managed and harvested grapes. My neighbor fermented the wine. Of course, all non-deductible
I deducted the cost of the vines, fertilizer, trellises and the irrigation system.
Originally, the young vine grafts cost $10 a piece. However, the vines have matured and are worth considerable more. From talking with other vineyard owners, I would estimate that these mature, producing vines are now worth about $75 a piece or more. The vines were sold with the land.
With your guidance, I am trying to find out if the increase in value of the grapes vines can be added to the basis of the land I sold. Maybe this is a farming category?
Thanks very much,
Erik
