Re: Depreciating Hive Equipment
The only time it makes sense to depreciate is when the bulk of your income will be from the bees. This can smooth out the cash flow curve, especially in very good years.
If you expense it and can take it out of other farming profits, you may be able to reduce the profit enough to justify this treatment. This is most useful when an established farming business adds a new venture such as beekeeping.
If the bee equipment means an overall loss where a large portion is other farm income, you may be able to book a carried loss to offset income over the next few years. Ask your accountant about this.
I've leaned heavily toward taking immediate write off when feasible because it almost always gives me the most benefit. This is because I am using a farm loss to offset other non-farm income. I am not a commercial beekeeper so take this with a grain of salt!
DarJones - 46 years, 16 colonies (max 40), sideliner, treatment free since 2005, 11 frame broodnest, small cell