Irrigation System?? Cancel The title field is required!

1. Chris Wiedenmeyer

   

   0 posts
   
   12/3/2012 8:12 AM

   The resort I work for has just purchased another golf course. I have been asked to help with coming up with an explanation of where the irrigation system falls. The question is, "is the irrigation system equipment or part of the property?"
   
   They have asked their attorneys and they have told them to come up with some sort of literature citing one way or the other. My thought would be it is equipment and could be depreciated over time, but I am not able to find any info supporting that.
   
   If any of you have ever dealt with this or have an idea of where I can find some literature that would be great. Thank you all.

   
   
   
   
2. Kevin Fateley

   

   5 posts
   
   12/3/2012 11:12 AM

   Chris,
   
   I would consider the system as equipment with a life span for a depreciation stand point.
   I would not consider it property like land. What is the age of the system? original cost? expected life span? etc and get that to the tax acct. for a better answer.

   
   
   
   
3. Chris Wiedenmeyer

   

   0 posts
   
   12/3/2012 1:12 PM

   Kevin,
   That is how I would consider it also, and along the lines of what I told them to do. I never thought of having the accountants look at it, there may be something they can find, or do, with the info on their end.
   
   Thanks

   
   
   
   
4. Corey Eastwood

   

   82 posts
   
   12/3/2012 1:12 PM

   Good question. Though never have done it, as I understand it, leasing an irrigation system only covers what is above ground or visible. That is heads, controllers, pump station, weather station. computer and software. The piping belongs to the property.

   
   Corey Eastwood CGCS, Stockton Golf & CC, Retired