Reforestation costs are entered in two areas of TurboTax, depending on the total amount you spent.
Up to $10,000 may be entered under Less Common Business Situations >> Business Deductions. Although the program will let you enter any number, the IRS rules limit the deduction to $10,000 in the first year.
Any excess over $10,000 may be entered under the related business or rental property as an Intangible Asset. Use Code 194, which appears in the drop-down under "Select a Code Section." Enter 7 years (84 months) as the period to amortize. Use a 7/1/YY date to allow for a half-year amortization in year one. TurboTax will calculate the amortization for this year and carry the information over to future tax returns.
This process in TurboTax has been the same for the last several years - you must make the split yourself and enter the correct amounts in each area of the program.
See also: IRS Pub 535, Reforestation Costs in chapter 7.
The gravel road is not an intangible, although you can enter the cost under the intangible asset type for depreciation. Choose "Other asset type." Enter your total cost and the date the road was completed as the purchase date. You will need to choose an asset class life, which would be the length of time you plan to use the road, since it is temporary. In most cases, you would choose straight line depreciation, unless you have an authoritative reference for a different treatment.
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