Nondepreciable land and supportable purchase allocation
CALIFORNIA AGRICULTURAL PROPERTY OWNERS
Reviewed September 1, 2026 · Updated for current federal bonus-depreciation guidance
Farm property requires more than a building-versus-land split.
California agricultural acquisitions can combine nondepreciable land with barns, shops, packing or cold-storage buildings, irrigation, wells, drainage, fencing, roads, permanent plantings and operating machinery. A cost segregation screen should identify what was actually acquired, who owns each improvement and which assets already appear on the farm’s equipment schedule.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
Farm tax recovery periods do not fit a generic commercial template. Publication 225 and Publication 946 discuss separate rules for farm buildings, single-purpose structures, irrigation, wells, land improvements, machinery and fruit or nut trees and vines. The engineering allocation must reconcile total basis while the owner’s farm-tax adviser determines MACRS, ADS, placed-in-service and California adjustments.
Plain English: you are not creating a new deduction. You are identifying when supported pieces of the property may be depreciated.
WHAT WE REVIEW
Agricultural assets and records to separate
Barns, shops, packing, storage and single-purpose structures
Irrigation, wells, drainage, ponds and water infrastructure
Roads, paving, fencing, lighting and loading areas
Trees, vines and other permanent plantings by service date
Machinery, equipment, inventory and existing asset schedules
SHOW ME THE NUMBERS
What an agricultural allocation should show
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- Total acquired farm property
- Estimated depreciable basis
- Buildings and supported improvements
- Potential faster basis
- Assets separated by farm-specific class life
- Potential upfront federal effect
- CPA-modeled timing under current federal rules
- Study or comparison benchmark
- Separate California depreciation schedule
This is a timing illustration, not guaranteed permanent tax savings. California commonly requires a separate depreciation schedule because it generally does not conform to federal bonus depreciation.
DOES IT FIT?
Strong candidates usually have four things.
✓
Farm or agricultural property is used for profit
✓
Land, crops, equipment and improvements can be separated
✓
Purchase or project basis is documented
✓
Farm-tax adviser reviews the specialized recovery rules
STATEWIDE COVERAGE
Serving owners throughout the region.
Central ValleySacramento ValleyNorth CoastInland EmpireImperial ValleyCentral CoastSan Joaquin ValleyCalifornia statewide
PORTFOLIO PRICING
More properties. Lower cost per study.
Order and pay for the properties together to receive a simple portfolio discount.
2 properties5% off3 to 4 properties10% off5+ properties15% off
STRAIGHT ANSWERS
Frequently asked questions.
Is farmland depreciable?+
Land itself is not depreciable. Buildings, certain improvements, machinery and some agricultural assets may be depreciable under separate rules when the taxpayer has basis and uses them in a business.
Are barns and agricultural structures all 20-year property?+
No. Publication 946 distinguishes farm buildings from certain single-purpose agricultural or horticultural structures and other assets. The actual use and construction must be documented.
Can irrigation and wells be included?+
Potentially, but irrigation, wells, drainage and related assets can have different class-life and placed-in-service facts. They should be identified separately from land and operating equipment.
How are vines or orchard trees handled?+
Fruit or nut trees and vines have specialized placed-in-service and depreciation guidance. A cost allocation can support basis, but the farm-tax adviser should determine the applicable federal and California schedules.
Is the free estimate a completed study?+
No. It is an illustrative screen using the facts you provide. No engineering takeoff, professional certification or tax opinion is included. Technical work begins only after a signed and paid engagement.
Does my CPA need to approve the study first?+
No. It is smart to ask whether you can currently use additional depreciation, but the paid study does not require advance CPA approval. Your CPA makes the final filing decision.
Do you guarantee tax savings?+
No. A study accelerates the timing of eligible depreciation. Results depend on basis, property facts, placed-in-service dates, passive-loss rules, tax rates and the owner's filing position.
AUTHORITATIVE SOURCES
Reviewed against current IRS and California guidance.
Last reviewed September 1, 2026. Tax rules and procedures can change. Your CPA should confirm the law that applies to your acquisition date, placed-in-service date and return.
IRS Topic 704: Depreciation↗IRS Cost Segregation Audit Technique Guide↗IRS Notice 2026-11: 100% bonus depreciation guidance↗IRS Notice 2026-16: qualified production property↗California FTB federal tax change summary↗IRS Publication 225: Farmer's Tax Guide↗IRS Publication 946: How To Depreciate Property↗IRS Instructions for Form 4562↗California 2025 Form 3885A Instructions↗
FREE PRELIMINARY PROPERTY SCREEN