New Guidance on Depreciating Water Wells, Drip Irrigation Systems and Grape Trellises

Abstract

<p>In a decision released on April 3, 2007, the Tax Court provided new insights into the recovery period<strong>1 </strong>for depreciating water wells, drip irrigation systems and grape trellises.<strong>2</strong> While the classification of property for depreciation purposes is, in part, a facts and circumstances matter within the context of the class lives assigned by the Internal Revenue Service,<strong>3 </strong>the case of <em>Trentadue v. Commissioner</em><strong>4 </strong>provides helpful insights into how the three types of property should be classified for depreciation purposes.</p>