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Petitioners use the head pruning method for their Carignane,
Zinfandel, and Petite Syrah grapevines and trellising for the
others.
During 1999 and 2000, petitioners’ son, Victor Trentadue
(Victor), managed petitioners’ vineyard operations, including the
growing of grapes, and he also managed Trentadue Winery,
petitioners’ separate business for making wine. Victor also
owned his own business called Four Seasons Vineyard Management
Co., which installed, maintained, and removed grapevines,
trellises and irrigation systems.
Petitioners attached to their 1999 and 2000 Joint Federal
Income Tax Returns, a Schedule F, Profit or Loss From Farming, on
which they claimed depreciation deductions for, among other
items, the trellis components, trellis systems, irrigation
systems, and the well. With respect to the above-listed
property, depreciation deductions were calculated using a 10-year
class life, which includes 7- to 10-year recovery periods.
In the notice of deficiency, respondent determined that the
recovery period for each of these properties was 15 years, which
would place them in the 20-year class life, which includes 15- to
20-years class lives.
Trellising
Trellising is a method of training vines used in the
production of wine grapes. The primary components of a trellis
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Last modified: November 10, 2007