My wife and I started an orchard this year on our property. It will be 10 years or so before the trees produce enough to sell for profit. The trees are planted on our land and so far we have about $15k in total expenses. We both work full time jobs and have 3 kids, one in college. In the past I have always done our taxes with turbotax but am confused about what to do with these new business expenses. I sat with two different local CPAs and received two completely different answers. The first said save all receipts and dont deduct any expenes until we start to sell. The other said all expenses incurred this year should be applied this year.
We want to make sure we dont miss an opportunity to claim expenses but also want to follow the law. We sent the IRS this question 2 months ago and have received 2 respones saying our question is difficult and they will need more time to answer.
Not only do we have the expense of the trees, mats, stakes ect... But we have purchased equipment. A tractor, a front end loader, bush hog and more.