Richard and Irene Sebed began planting a vineyard in Ohio in 2018. The costs of the land preparation, labor, rootstock, and planting were capitalized as was the cost of the land itself. In 2021, when the plants became viable, the Sebeds placed the vineyard in service, and their winery began operations. The Sebeds want to know whether they can claim a deduction under § 179 on their 2021 income tax return for the 2018 costs for planting the vineyard. Prepare a research memo documenting your findings and explaining to the Sebeds if and how they may deduct the vineyard costs.
A few pointers/explanations would be extremely helpful as I begin the memo for why or not they can claim a deduction under section 179.