farm coop - how to treat capital investment please?

[WITAXLADY]

Farm has a capital investment of $12,000  into the coop/cheese plant- Is this a non deductible item to keep track of

or depreciate, amortize? or a deduction?

Thank you

I did do reading and it talks about patronage - I know that.

Thank you,

Darlene

[Lee B]

I would think it would be basis only deductible if the coop liquidated and ceased to exist.

[DANRVAN]

Most likely he has purchased capital stock in a section 521 coop.  Would be treated as an investment in any case.

 

 

 

[TAXMAN]

That is the way I handle them here. It is an investment.

[WITAXLADY]

Thank you - that is what I did..

thanks for verifying it -

there are some doozy of laws out there!!

D