farm rental taxable grant

[taxman40]

I have a client that has Sch E land rental for farming. They received a taxable grant for soil conservation and spent all the money on the project. How much can I depreciate or expense this year. The rental income is $5000. The taxable grant was 60K with that much spent. Thanks!

[IRonMaN]

But what did he spend the 60K on?

[taxman40]

drainage and construction for land improvements for soil & water conservation.

[IRonMaN]

I have a really good friend named Google.  He has helped me out a million times.  He is a good friend to have and I bet if you Googled that information Google could be your friend too.

[PATAX]

The Tax Book Deluxe Edition may be able to help you with this, or at least steer you in the right direction. In your case it is not the most common case as usually it is the actual farmer on a Schedule F, but in your case it is a Schedule E landlord. I cannot check the Tax Book Deluxe for you as I am typing this right now while sitting at a farm with 🐕 the boss. Good luck.