I have a tree farm and just purchased an additional 49 acres what can I deduct?

I have a tree farm of approximately 280 acres which I own free and clear. I just purchased a 49 acre contiguous tract with some mixed timber on it. I paid $40k cash and financed $70k plus closing cost.

What I’m I allowed to deduct or depreciate?

Thanks

410

1 Best answer

Level 15

Dec 28, 2022 8:16:12 AM

Only the interest on the loan is deductible ... land is a non depreciable asset and is also not an expense.

Level 15

Dec 28, 2022 8:16:12 AM

Only the interest on the loan is deductible ... land is a non depreciable asset and is also not an expense.

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I have a tree farm and just purchased an additional 49 acres what can I deduct?