Section 180 Tax Savings May Be Right Under Your Feet
You own the land. You own the nutrients. You may be owed a tax break.
IRS Section 180 deductions—sometimes referred to as Legacy Nutrients Deductions or Residual Fertility Deductions—allow growers and ranchers who’ve purchased or inherited farmland to expense the value of “excess” soil nutrients.
The savings can be as much as $2000+ per acre. But to claim Section 180 deductions, landowners need clear, accurate Residual Fertility Valuation documentation.
If you qualify for Section 180, we can help you through the process.
Through our Residual Fertility Valuation program, Advanced Agrilytics:
- Delivers accurate fertility calculations
- Provides clear, defensible documentation
- Works with your team to make the process easy
There’s no cost and no commitment to get started. We work with you and your trusted tax advisor to determine if your land qualifies for Section 180 deductions (and how much). We do not share data.
Who is eligible for the Residual Fertility Valuation Program?
You may qualify if you:
- Purchased or inherited farmland or ranch land since 2010
- Currently own land is that is actively engaged in production agriculture
- Have not previously claimed Section 180 deductions on this land
Section 180 deductions are often overlooked.
We’re working to change that.
Residual Fertility Value Deductions (or Legacy Nutrient Deductions) aren’t new—the IRS established Section 180 back in 1960. But many farmers and ranchers don’t know their options.
The Problem
Getting the necessary data and documentation to satisfy IRS expectations
The Solution
Advanced Agrilytics’ Residual Fertility Valuation Report
We deliver what the IRS requires
- We don’t estimate excess fertility value; we calculate it, sample by sample.
- We use point-level soil data and nutrient-specific critical levels
- We calculate values based on verified pricing history back to 2010
- We use a proprietary back-calculation methodology when original soil tests are unavailable
Our RFV Reports are clear, accurate, and ready for your accountant.
Frequently Asked Section 180 Questions
How do I know if my land qualifies for Section 180 deductions?
We will consult with you and your trusted tax advisor to help you find out, at no cost to you. As a general guide, agricultural land purchased or inherited qualifies if it contained excess fertility at the time of acquisition.
Can I still claim a Section 180 deduction if I've owned the land for years?
We can help you calculate a Section 180 deduction retroactively for up to 15 years. To file your claim, you’ll need accurate documentation of the fertility present at the time of purchase/acquisition. If you don’t have that data, we can help you back-calculate it.
What information do I need to start the Residual Fertility Valuation process?
We start with basic information about your land, including the location, approximate acreage, and acquisition date. If you decide to move forward, we’ll need soil test data. When necessary, we can coordinate new soil sampling and testing.
Is "Section 180" the same as a "Legacy Nutrient Deduction"?
Yes, “Legacy Nutrient Deduction” and “Residual Fertility Deduction” are terms used in the industry to describe the IRS’ Section 180 provision. Residual Fertility Valuation (RFV) is Advanced Agrilytics’ program for documenting and supporting the Section 180 deduction.
How does Advanced Agrilytics help me claim a Section 180 deduction?
Our Residual Fertility Valuation (RFV) program produces the data- and science-backed documentation your accountant will need to claim the Section 180 deduction properly. Every data point in the RFV Report is traceable, auditable, and built to meet IRS expectations, so you can file confidently.
If you still have questions, our Residual Fertility Valuation Program page offers more detail. But our team can help you get started—just reach out.
