@fud1 wrote:
The cost of the pheromones is a personal purchase, but so is a chainsaw, gas and oil for the saw, rental of a chipper, payment to trucker to haul off forest debris. The latter all qualify for deductions under the fire mitigation clause. Pheromones were purchased to reduce possibilities of a forest fire i.e. fire
mitigation.
Please respond ASAP
Thank you
The problem is that we need a lot more information. Generally speaking, anything you do to manage your personal property is non-deductible. You can usually deduct ordinary and necessary business expenses related to the production of income, such as selling timber off your land. Then, there may be special federal or state programs that relate to specific purposes, such as land conservation, that have different rules than the general rules for personal or non-business property. And most people here won't be familiar with every single rare and uncommon thing in the tax code.
I do recall answering another question recently about payments a person received from a conservation program and whether they were taxable, but I didn't keep notes and would have to research it all over again.
To start out, is this a state or federal conservation program? Is it a tax credit, or is it a payment, and are you trying to deduct expenses from the payment or use expenses to qualify for the credit? Which tax form is it reported on?
