Can I depreciate existing fence on land I purchased for a farm? And if so, how is the cost calculated?

[TWH65]

Does the same thing apply to inherited property?

[Hal_Al · Accepted solution]

Q. Can I depreciate existing fence on land I purchased for a farm?

A. Yes.

Q. And if so, how is the cost calculated?

A.  You allocate the purchase price between land and assets (such as a fence) as best you can. Ideally you could have it appraised. But an estimate based on what a new fence would cost (reduced based on the condition of the fence) would probably be close enough.

Q. Does the same thing apply to inherited property?

A. Yes, based on the fair market value (since there is no purchase price) on the date of death of the decedent.