IRS Section 180 in Illinois: What Corn Belt Buyers Need to Know

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 it also means something significant for the tax picture of anyone who has recently purchased Illinois farmland.

Why Illinois Is One of the Best States for Section 180 Deductions

IRS Section 180 allows farmland buyers to deduct the value of residual soil nutrients — phosphorus, potassium, calcium, magnesium, and lime — that were built up by the prior owner. The more carefully managed the land, the higher those nutrient levels, and the higher the potential deduction.

Illinois farmland has a few characteristics that make it particularly strong for Section 180 claims:

• High-quality Midwestern soils with deep organic matter and naturally productive profiles — previous owners often applied inputs aggressively to maintain productivity
• A large percentage of Illinois ground is cash-rented to professional operators who follow aggressive fertility programs to maximize yield on ground they do not own
• Land values in Illinois are among the highest in the nation, reflecting genuine productivity — and productive land tends to carry strong residual fertility
• A long history of soil testing and precision agronomic management means fertility data is often available for prior crop years

What Section 180 Deductions Look Like in Illinois: Real Deal Data

Here is a selection of actual closed deals from our Illinois clients:

The range here is real — from under $400 per acre to nearly $4,700 per acre. The difference is driven by how aggressively the prior owner managed fertility, what crops were grown, and the specific soil types on the parcel. Every piece of ground is different, which is why actual soil testing — not estimation — is the only way to know your number.

The One Rule That Applies Everywhere in Illinois

No matter where in Illinois you buy ground — Champaign County black dirt, Lee County sandy loam, or Vermilion County productive clay — the same timing rule applies:

You must complete soil testing BEFORE applying any fertilizer to the land.
The residual fertility deduction is based on what was in the soil at the time of your purchase. Once you apply fertilizer, you cannot separate the pre-existing nutrients from what you added — and the deduction is permanently lost.

For Illinois buyers, this is particularly urgent in the fall and spring, when fertilizer applications are common and the farming calendar moves fast. Many buyers have missed the window simply because no one told them it existed before their first anhydrous application.

How to Get Started on Your Illinois Property

The process is straightforward. After you close on your Illinois farmland:

1. Contact Soil Tax Guys immediately at (217) 356-5756. We are based in Champaign, Illinois — we know this ground.
2. We schedule soil sampling using GPS-guided equipment across your acreage.
3. Our accredited lab partner analyzes the samples and our certified agronomist documents the residual fertility.
4. You receive a CPA-ready report with your per-acre deduction value and total deduction amount.
5. Hand the report to your tax advisor and they handle the filing.

We have worked with buyers across Illinois — from the Quad Cities to Champaign-Urbana to the southern region. If you are buying Illinois farmland, we know the soils, we know the crops, and we know how to document what is there.

Just closed on Illinois farmland? Or closing soon?
Get a free estimate at soiltaxguys.com/section-180-calculator or call (217) 356-5756. We are local, we move fast, and we protect your window.