09 Jun FARM INCOME TAXATION: REAPING WHAT GOOD LOBBYING HAS SOWN
- Feed is generally deductible in the year of payment, with some limitations for cash method taxpayers. Prepaid feed can also be deducted, provided it is not being done for tax avoidance.
- Fertilizer and similar costs to enhance farmland are deductible, including (in most cases) costs that will create a benefit of longer than one year. If the costs are capitalized, the costs may be recovered at varying rates.