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NE Ohio | The amount per acre needs to be reasonable for the spacing and age of the system. There is no blanket percentage or value that's used. Each situation is different.
If new tile on 30' centers costs $1500 but farm purchased has clay tile from 40 years ago on 40' centers, then depreciable basis of tile would need to be less than $1500 per acre. If you have a system that was installed a couple of years ago, then closer to current value would be more reasonable. Make sure you have a good accountant who understands tile and what it means to a farm so they can explain it to the IRS agent if you ever get audited because no one from the IRS will understand it. | |
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Tile Depreciation %
