Apple tree farm

[JimTaxes]

I did research this but cannot find answer..

SMLLC,  bought some trees, planted them.. some equipment. supplies, fence, etc about $ 4,000 in 2016

trees will not be ready for 2 or 3 years.. 

Can these expenses be deducted in 2016 or do they get capitalized somehow..thank you

 

[Ringers]

Here is what I have used in the past ot determine whether to expense or capitalize the pre-productive expenses.

 

https://www.irs.gov/businesses/small-businesses-self-employed/farmers-atg-chapter-four-expenses-1

[Lee B]

IRS Pub 225 Farmers Tax Guide is a good resource

[DANRVAN]

He might benefit from electing out of capitalizing preproduction cost through Reg. 1.263A-4. He would then use alternative depreciation per 168(g)(2).