By Gary Allen Burns
If a plantation was established on land you already owned, all costs of establishment are capitalized into a pre-merchantable account.
These costs include site preparation, seedlings, planting, herbaceous control, fertilizer and any other practices necessary for establishment.
Costs expensed, or reimbursed by a cost-share program excluded from income under IRC section 126 are not included here to avoid deducting an item twice.
The initial allocations become your original basis.