Cal. Code Regs. tit. 18 § 24369(a)
Current through Register 2024 Notice Reg. No. 40, October 4, 2024
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.
Cal. Code Regs. Tit. 18, § 24369(a)
Except for the deletion of the percentage limitations this regulation is substantially the same as Section 26 CFR 1.175-1.