Notice 2013-18 [PDF 67 KB] reports that the decision to remove blackberry, raspberry, and papaya plants from the list is based on information provided by the U.S. Department of Agriculture.
According to Notice 2013-18, plants producing the following crops or yields and continuing to have a nationwide weighted average pre-productive period in excess of two years are:
Almonds, apples, apricots, avocados, blueberries, cherries, chestnuts, coffee beans, currants, dates, figs, grapefruit, grapes, guavas, kiwifruit, kumquats, lemons, limes, macadamia nuts, mangoes, nectarines, olives, oranges, peaches, pears, pecans, persimmons, pistachio nuts, plums, pomegranates, prunes, tangelos, tangerines, tangors, and walnuts
Today’s notice states that this is not an all-inclusive list of plants having a nationwide weighted average pre-productive period in excess of two years, and that Treasury and the IRS intend to continue to update this guidance periodically as needed.
Accounting method changes
The IRS today also released an advance copy of Rev. Proc. 2013-20 [PDF 73 KB] which provides procedures for a taxpayer to obtain the automatic consent of the IRS Commissioner to change its method of accounting under section 263A for the production of one or more plants (i.e., raspberry, blackberry, and papaya plants) removed under Notice 2013-18 from the list of plants having a pre-productive period in excess of two years.
For more information, contact KPMG’s National Director of Cooperative Tax Services:
David Antoni, in Philadelphia
Or Associate National Director of KPMG’s Cooperative Tax Services
Brett Huston, in Sacramento