Details of the Citrus Tax Incentive Made Law
See the details of the recently passed Citrus Tax Incentive.
The Citrus Tax Incentive was recently passed as part of the tax bill. Mike Sparks, Executive Vice President and CEO of Florida Citrus Mutual, released a statement in a CitrusIndustry.com article going over the details. See them below.
Details of the Citrus Tax Incentive
Sparks shared that the tax bill has been in the works for three years, and that the new law took effect on December 22nd, 2017. According to Sparks, “The law allows growers to deduct tree acquisition costs as well as costs associated with subsequent planting, cultivating, maintenance and development.” In order to take advantage of the deductions, the grower needs to maintain “at least 50 percent ownership of the acreage in the year new costs were incurred.” Additionally, Sparks added, “if growers acquire new acreage that is blighted, they are now allowed to take these deductions regardless of who suffered the blight.”
Sparks encouraged growers to look to their accountant to identify those items that “fall into the planting, cultivating, maintenance and development of trees,” and are eligible for the deduction. However, he added that “a good rule of thumb will be whatever costs were deemed to be depreciated items in the past are now expendable.” He also added that the tax bill “didn’t expand the items that can/should be deducted,” but that it “provided new opportunities for growers to expense these costs to incentivize more capital for replanting.”
Sparks ended by recognizing the efforts of Congressmen Vern Buchanan, Tom Rooney and Dennis Ross, and Senators Bill Nelson and Marco Rubio in getting the bill passed.
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