Gary Everson and Mary Everson v. United States

EUGENE A. WRIGHT, Circuit Judge.

We consider whether taxpayers may depreciate or receive tax credits for 250,000 trees and bushes that serve as windbreaks on their commercial farm. We hold that they may not.

FACTS

In 1983, taxpayers Gary and Mary Ever-son purchased an undivided 64 percent interest in a 3,700 acre wheat farm in Carbon County, Montana. The purchase price was approximately $1,200,000, including improvements and equipment. The previous owners had planted approximately 250,000 Russian olive trees and Caragana bushes in rows perpendicular to the wind. These “windbreaks” prevent soil…