If you have farm clients who have purchased or inherited agricultural land in the past few years, there is a reasonable chance they are sitting on a significant unclaimed tax deduction — one that most CPAs, even those with strong agricultural practices, have not brought to their attention. That deduction is the IRS Section 180 […]
Illinois produces more soybeans than any state in the country and is consistently among the top three corn producers. It is home to some of the deepest, most productive topsoil on earth — and years of intensive, professional agronomic management mean that soil is loaded with accumulated fertility. That is great news for crops. But […]
A 1031 like-kind exchange is one of the most powerful tax deferral tools available to real estate investors — and it works for farmland too. By exchanging one qualifying property for another, you defer the capital gains tax that would otherwise be due on the sale. What most farmland 1031 buyers do not realize is […]
Most of the content you will find about IRS Section 180 focuses on cropland — corn, soybeans, wheat, and other row crops. That makes sense. The per-acre values on cropland tend to be higher, and the soil fertility story is easier to tell. But we get this question from ranch buyers all the time: does […]
Purchasing farmland is one of the most tax-efficient investments you can make in American agriculture. The federal tax code contains multiple provisions specifically designed to help farmers and ag investors reduce their taxable income in the year of purchase — and in the years that follow. The problem is that most buyers only use one […]
Inheriting a farm is one of the most significant — and complicated — financial events a family can experience. On top of grief, there are estate questions, basis calculations, decisions about whether to keep the land or sell it, and tax implications that most families are completely unprepared for. Here is one piece of good […]
If you have spent any time talking to your CPA about farm tax deductions, you have probably heard Section 179 mentioned. You may have even heard Section 180. Most farmers — and, frankly, many CPAs — assume they are the same thing, or that one supersedes the other. They are not the same. They cover […]
You just closed on a piece of farmland. Congratulations. Now, before you do anything else — before you plant, before you fertilize, before you even talk to your agronomist about next season — there is a tax deduction buried in that soil that most buyers walk right past. It is called IRS Section 180. It […]