That’s what the Tax Court told an accountant who paid more than $300,000 to get farm property ready for producing maple syrup and harvesting blueberries. He wanted to deduct the cost as a business expense, but the court said they were start-up costs. He hadn’t performed any function for which the business was organized (i.e., collecting syrup and harvesting blueberries). “Cultivation of plants is an essential part of a trade or business involving production of commodities from those crops.” Once the business begins to function, start-up costs (see business start-up and organizational costs) can be deducted (generally amortized over 15 years).
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