§ 24369(a). Soil and Water Conservation Expenditures.

Source: https://govt.westlaw.com/calregs/Document/I004812034C8411EC89E5000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)

§ 24369(a). [FN*] Soil and Water Conservation Expenditures.

In General. Under Section 24369, a taxpayer engaged in farming may deduct its soil or water conservation expenditures which do not give rise to a deduction for depreciation and which are not otherwise deductible.

Section 24369 permits a deduction of soil and water conservation expenditures without limitation as to amount. This differs from Federal law, which limits such expenses to 25 percent of the taxpayer's gross income from farming. Also, since such expenses are fully deductible, there can be no excess carried over and deducted in succeeding income years. If a taxpayer does not adopt this method, such expenditures increase the basis of the property to which they relate.

Credits

History

1. New Reg. 24369(a) filed 12-14-64; effective thirtieth day thereafter (Register 64, No. 25).

[FN*]

Except for the deletion of the percentage limitations this regulation is substantially the same as Section 26 CFR 1.175-1.