Publication 225 |
2000 Tax Year |
Choosing To Deduct
You can choose to deduct soil and water conservation expenses on
your tax return for the first year you pay or incur these expenses. If
you choose to deduct them, you must deduct the total allowable amount
in the year they are paid or incurred. If you do not deduct the
expenses, you must capitalize them.
Change of method.
If you want to change your method of treating soil and water
conservation expenses, or you want to treat the expenses for a
particular project or a single farm in a different manner, you must
get the approval of the IRS. To get this approval, submit a written
request by the due date of your return for the first tax year you want
the new method to apply. You or your authorized representative must
sign the request.
The request must include the following information.
- Your name and address.
- The first tax year the method or change of method is to
apply.
- Whether the method or change of method applies to all your
soil and water conservation expenses or only to those for a particular
project or farm. If the method or change of method does not apply to
all your expenses, identify the project or farm to which the expenses
apply.
- The total expenses you paid or incurred in the first tax
year the method or change of method is to apply.
- A statement that you will account separately in your books
for the expenses to which this method or change of method
relates.
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