@erikhedberg wrote:
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?
@erikhedberg Can you explain the rationale for your belief that the increase in value can be added to the basis?
You might want to review the information at the following web sites.
https://www.irs.gov/pub/irs-utl/wine_industry_atg.pdf
https://www.irs.gov/publications/p225
Part of the federal income tax system is predicated upon imposing a tax on any gain (whether capital or ordinary) in value when property is sold. That entire system would be rendered moot if taxpayers were able to add increases in value to their bases when property is sold.
