1. Who Qualifies?
If the land is used for crops, cattle, or livestock, Section 180 can apply.
It doesn’t work for timber or hunting ground.
Section 180 applies to “land used in agricultural pursuit.”
When clients ask, “Does my place count?”, this is usually all they need to know.
2. Why Timing Matters.
Have you already fertilized after purchase without doing a soil test first?
That single decision determines whether the deduction exists.
The soil test must happen after closing and before fertilizer is applied.
Once fertilizer hits the field (without a soil test), the deduction opportunity is gone.
Every season we see landowners miss five- or six-figure deductions simply because no one mentioned this before spring fertilizing.
3. Is This a One-Time Deduction?
Yes. One time, tied to the year of purchase.
Some CPAs take the full deduction at once; others spread it out (e.g., 60 / 30 / 10 percent over three years).
If you don’t take it, it’s an absolute loss. You’re never going to get it again
4. Does Grazed Land Count?
Yes. Any ag-use ground, tillable or grazed qualifies as long as the soil test is done first.
5. What Drives the Dollar Value?
Think of the deduction as being tied to what’s already in the soil.
Higher nutrient levels = higher deductible value.
Phosphorus, potassium, calcium, magnesium, and other nutrients are what is used for the valuation.
Our national average runs around $500 per acre, but local results vary:
Note: Insert chart with all the deals done.
Every report is documented and CPA-ready before any claim is filed
You’ve got documentation with the purchase. Here’s Section 180, this is why we did it. There’s nothing to argue about.
-Russ, CPA
6. How long has this code been around?
Since 1960. Passed by Congress, not a new program or loophole.
It’s long-standing tax law used quietly for decades.
People don’t even talk about it… I’ve been doing this with my clients for five, six, seven years now.
-Russ, CPA
7. What Do You Test For?
Phosphorus • Potassium • Calcium • Magnesium • Sulfur • Zinc • Iron • Boron • Manganese • Copper
Each state’s land-grant university sets a baseline; anything above that line becomes excess nutrients = deductible value
8. Grid Size and Process
Typical sampling grid: 2.5 – 5 acres (state dependent).
All samples are collected by independent unbiased agronomists and analyzed through accredited third-party laboratories.
Every report is:
- Signed by our Certified Crop Advisor affiliated with the American Society of Agronomy
- Reviewed for CPA filing compatibility
- Shown math easy to tie to the science
Average turnaround for soil test: 10–14 business days.
9. Can this work with a 1031 exchange?
YES – if part of the purchase used new cash or a loan.
NO – if 100 percent was funded through a 1031 exchange (no taxable income = no deduction).
Your CPA can confirm how your structure applies.
10. The property has a conservation easement already in place, how does this affect the potential for tax benefits?
No. If the property is entirely in a conservation easement it doesn’t qualify for a IRS Section 180.
11. How Do I Know It’s Compliant?
Our reports follow strict standards:
Certified Crop Advisor affiliated with the American Society of Agriculture
Independent lab data verification
CPA ready report
Science and data backed with upfront math
Strict compliance is what is important for clients and accountants.
— Alec Bean, C.C.A.
Most owners don’t miss Section 180 because they ignore it, they miss it because no one ever told them.
Now that you know how it works, would it make sense to see what your acres could qualify for before you apply fertilizer?
