Are there tax advantages
you know if there are tax advantages to opening a vineyard? We have some acreage that has pecan trees and we are looking to add a vineyard to the land if it has some advantages.
Hockley County Texas
Generally establishment costs of a vineyard or orchard are capitalized and may be depreciated over time (see IRS Publication 225 Farmer's Tax Guide). So, if your question is can you deduct the cost of establishing a vineyard from current income, the answer is no. It will have to be capitalized and deducted as depreciation from future sales.