Seed oysters

[grmy2h]

New s corp client raises oysters on a oyster ground, harvests, then sells. Former preparer has an "other asset"account for "oysters planted" and adds all oyster seed purchased to this and subtracts all oysters sold from it. There is a very large amount in the other asset ending balance for 2011 and client states all the seeds are planted in the river.

I have tried researching the actual expense of seed oysters and everything I can find (which is not much), seems to indicate that the oyster seed is an expense in the year purchased and not an asset.

Does anyone have any experience with this? How do you classify the oyster seed or what is your opinion?

[jainen]

>>the seeds are planted in the river<<

More and more companies are moving their assets offshore. If it's just a shell company, you need an oyster in compromise.

[Lee B]

You need the to read the IRS PUB info about agriculture. This is very similar to planting a vineyard, which is a capital asset or the

capitalization of brood mares or christmas trees etc etc. If you're not familiar with this area of taxation, you will either need to spend some time reading and researching all the special rules in this area or you need to pass this return on to a preparer that knows this area. It would be a big mistake to do this return quickly, because with all the spcial rules you could screw up badly.