Vineyard wind machine, what type of asset is this?

[Just-Lisa-Now-]

Ive got a client with a vineyard. Shes going to be installing a wind machine to help keep her vines from freezing? I think that's the purpose.

Its a large structure, $50k, permanently attached to a cement slab (still needs to be poured), is this considered a land improvement? or how do I depreciate this thing?

[Jim-from-Ohio]

sounds like land improvements over 15 years but here is an article, though it does not discuss wind machines it does address equipment vs land improvements in the wine industry:

https://www.calt.iastate.edu/article/two-rulings-importance-wine-industry-0

[dkh]

Vineyards are considered agriculture - correct so would it fall under single purpose ag building - 10yr depr ?

[BobKamman]

The citrus orchards we used to have in irrigated parts of Phoenix had something like that.  They looked like big airplane propellers on a 15-foot tower.  Purpose was to keep the air moving so the cold air would not settle in one place.  I wonder if you have two orthree separate items to depreciate -- the foundation; the tower; and its machinery.  

[dkh]

btw - 10yr single purpose ag buildings are eligible for Sec179  😁

[Camp1040]

I don't see it as improving the land, it is a piece of machinery that improves the harvest and helps prevent loss of product from the weather, are smoke pots and bird netting land improvements? This asset seems like it could be classified for the best result for the taxpayer, one big gray area. My opinion is machinery.

[IRonMaN]

Since I don't do anything farm related (other than eat food that comes from farming anyway), I looked at the post and thought it sounded like equipment to me.  So I like Camp's answer.  It might be wrong, but I like it 😜

[Camp1040]

My only farm experience, tax wise, is client that rents farmland in IA.

[IRonMaN]

Maybe that's why we both came up with the same answer 😁

[qbteachmt]

These are not "wind" so much as "stirrer" with short blades and a lazy rotation They keep the cold air from settling in one spot to avoid creating frost. They are not super tall, because cold air settles along the ground. They can be electric or diesel. They don't really have any building, and often a pole, not a tower; like a large flag pole sunk into concrete. We had them in the citrus and avocado orchards where I grew up. I found something from 1995:

https://lpg-apps.org/uploads/Modules/Library/951-citrus.pdf

In the cost analysis between this equipment and frost insurance: "Wind machine benefits and costs are estimated for a 15 year period. Wind machines last longer, but this is a typical machine life used for tax reporting and assigning a salvage value to the wind machine at year 15 is equivalent to analyzing the feasibility for the entire lifetime of a wind machine. With competitive markets, any profits after year 15 are captured in the salvage value of the wind machine at year 15."

[jeffmcpa2010 · Accepted solution]

Lisa:

We deal with these a lot in central WA. I DO NOT think the wind machine is permanently attached to the slab. I have had many clients buy used wind machines and have them moved and re-installed in a new location - all it takes is a new slab.

I have always treated them a Farm Machinery and Equipment, 7 yr property for 2021, eligible for either section 179 or Bonus depreciation. That is the only way I have ever seen them treated in our area.

Jeff

[Just-Lisa-Now-]

Thank you for this!

[jeffmcpa2010]

It's nice to come across one once in a while and say to myself "I know this one" and don't even have to look it up!

Glad I could help.

[ljr]

My first thought was machinery as well. Seems like it could be moved. I hope they "tip" you for all your hard work in wine. 

[BobKamman]

@ljr  A very inconsiderate client sold his vineyard last year.  He would bring me a bottle or two of some of the best red wine I have enjoyed in my life.  

[TiredFarmer]

Checked with a friend of mine and they agreed with jeffmcpa2010 .  They say that is how they do for their strawberry farmers wind machines.

[IRonMaN]

But, but, but, Camp provided that answer two hours earlier and nobody seemed to believe him (except for me).  I have changed the solution to Camp for this one --------------- at least on my computer screen ----------I'll have to figure out how to clean my computer screen later now that it is all marked up (nothing against you Jeff). 

[Camp1040]

A damp microfiber cloth with a drop of mild liquid soap, followed by a dry microfiber cloth! I just hope it wasn't permanent marker, in that case you may have to use gasoline! Do I need to add a disclaimer that the use of gasoline on a computer monitor is not recommended for the DIY'er and should only be left to professionals!! 😊

[IRonMaN]

The gasoline worked perfect.  Pour a little on the monitor, light a match, and problem solved.  

By the way, I might not be here until a little later tomorrow…….., I have to shop for a new monitor.

[TiredFarmer]

Sorry Camp I would never doubt IronMan I guess this tired old farmer needs to read better.  Hope you ALL have a good rest of the week!

[IRonMaN]

You read just fine ———- I was just having a little fun.  You can go take a well deserved nap now😁

[TaxGuyBill]

I'm just fascinated that there is a machine to "break wind".  🤣

[IRonMaN]

You find them at your local Ace Hardware across the aisle from the cheese cutters.