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the casing to a height approaching 50 feet from the surface of
the ground. The final 50 feet of the well boring was filled with
concrete around the 12-inch PVC casing in order to seal the well,
and a pump was inserted into the casing. Other than the pump,
which can be removed and replaced, the well has no moving parts.
The average life of this type of well is approximately 30
years, but can be longer or shorter depending on the water
quality and the existence of minerals in the vicinity that can
plug the casing. A well can be maintained and cleaned to stem or
remove the buildup of mineral deposits in the well casing. The
cost of such procedures ranges from $800 to $1,500. The cost of
petitioners’ new well was $11,426. Petitioners’ old well was
destroyed on April 14, 1999, at a cost of $900. The destruction
of the old well is accomplished by perforating the casing,
filling it with a waterproof clay, and capping it.
In General
For Federal tax purposes, petitioners classified and
consistently treated the trellis components, drip irrigation
systems, and wells as equipment depreciable over 7 to 10 years
for 1999 and 2000 and for all years before and after.
Petitioners’ certified public accountant, who specializes in wine
industry accounting and taxation, advised petitioners that he
believed their method for depreciation of the trellising and drip
irrigation systems to be correct. As grape growers and wine
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Last modified: November 10, 2007