You can choose to deduct soil and water conservation expenses onyour tax return for the first year you pay or incur these expenses. Ifyou choose to deduct them, you must deduct the total allowable amountin the year they are paid or incurred. If you do not deduct theexpenses, you must capitalize them. Change of method.If you want to change your method of treating soil and waterconservation expenses, or you want to treat the expenses for aparticular project or a single farm in a different manner, you mustget the approval of the IRS. To get this approval, submit a writtenrequest by the due date of your return for the first tax year you wantthe new method to apply. You or your authorized representative mustsign the request. The request must include the following information. - Your name and address.
- The first tax year the method or change of method is toapply.
- Whether the method or change of method applies to all yoursoil and water conservation expenses or only to those for a particularproject or farm. If the method or change of method does not apply toall your expenses, identify the project or farm to which the expensesapply.
- The total expenses you paid or incurred in the first taxyear the method or change of method is to apply.
- A statement that you will account separately in your booksfor the expenses to which this method or change of methodrelates.
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