Vineyard Can Depreciate Trellises As Equipment; Longer Period For Irrigation System

Abstract

In the Trentadue case, the Tax Court held that trellises built to train grape vines can be depreciated over 10 years but an irrigation system and a well are improvements to land that must be depreciated over 20 years. The court upheld the taxpayer's treatment of the trellises as equipment similar to fences, while upholding the IRS's treatment of the well and irrigation system as improvements to land, similar to drainage facilities.