I share the attitude of not using prepays as a continuing tool........pretty soon it's a snowball.

However..........your comment re the abuse of the prepays taxwise.........appears there has been discussion on that issue........so............making an entrance where uninvited..................

Section 464 is quite clear on the mathematical determination of what constitutes non-acceptable prepays by farmers............ie that section lays down precise math determination.........so if a person stays within those boundaries, one ought to be ok with IRS.

The rule----------generally stated--------50% of the expenses for a three year period.

464(f)(3)(A)(i)(I) the aggregate prepaid farm supplies for the 3 taxable years preceding the taxable year are less than 50 percent of,

                 464(f)(3)(A)(i)(II) the aggregate deductible farming expenses (other than                       prepaid farm supplies) for such 3 taxable years, or

So.........appears one ought not to worry about the nebulous application of judgemental boundaries by IRS in this area..........merely do the math.

(I realize it's not usual that one can find such a clear presentation in the Code-------stars and moon must have been lined up just right when that law was written!)