Every acre of farmland soil contains residual macro and micro-nutrients that build up over decades of farming. The Internal Revenue Code provides a substantial tax incentive to the land acquirer by separating out those residual nutrients from the land purchase.
| Landowner Type | Eligible? | Available Methods |
|---|---|---|
| Owner-operator (active farmer/rancher) | ✓ Yes | All methods, including immediate 100% expensing (§180) |
| Crop-share landlord | ✓ Yes | All methods (if rent is production-based) |
| Cash-rent landlord | ✓ Yes | Depreciation and depletion methods |
| Agricultural investor or trust | ✓ Yes | Depreciation and depletion methods |
| Land enrolled in CRP | ⚠ Conditional | Must be in active agricultural production |
§180
Immediate Expensing
100% in Year 1. Active farmers/ranchers only.
§167
Depreciation
multiple cost recovery options, based on the landowner's tax situation.
§611
Custom Depletion
Variable, tied to crop nutrient removal. Maximum defensibility and year-to-year flexibility.
A large one-time deduction can waste savings by pushing income below a useful bracket threshold — timing and pacing matter. Our tax experts are here to help you find the right approach.
You share the basics — we take it from there.
Review of property details, acquisition history, and baseline eligibility.
Professional soil sampling assesses current nutrient levels.
Soil scientist reconstructs acquisition-date nutrient levels and prices nutrients at fair market value; builds depletion schedule.
Validates preferred deductibility pathway with support documentation.
Your trusted CPA files the necessary forms, substantiated with supplied documents.
If questions arise, our tax experts are here to support you.
Most landowners have never been told about this deduction. Five minutes is all it takes.