How This Farm Tax Break Applies
The IRS Section 180 tax deduction was built with farmers in mind. It’s the most established and well-documented application of this particular farm tax benefit. And the deduction opportunity tends to be largest for landowners who’ve purchased or inherited farmland.
Basic eligibility requirements include:
Excess nutrients must be documented.
Reports should reflect residual nutrients above a one-year crop-use baseline, valued, and subject to basis limitations.
Value must reflect price at time of acquisition.
For example, if you acquired land five years ago, you'd calculate based on market value at that time, not current market value.
Ownership must meet timelines.
Agricultural land purchased or inherited since 1960 may qualify. Advanced Agrilytics focuses on acquisitions since 2016.
Section 180 Claims
Complex, On Any Kind of Land
Whether you’re filing a Section 180 deduction claim for farmland, timberland, or ranchland, the IRS requires detailed documentation, including but not limited to:
Professional soil testing
By a reputable lab, benchmarked to agronomic optimum thresholds
Soil analysis report
With expert interpretation of raw soil chemistry data
Evidence of residual fertility
Establishing "excess" nutrients, quantified above a crop-usage baseline
Advanced Agrilytics simplifies Section 180 claims.
The complex process keeps many growers and owners from pursuing the Section 180 deductions they’re eligible for.
Our analysis and reporting makes it easier.
We apply proven soil science to quantify, attribute, and defend residual soil fertility, and use unbiased, science-backed analysis that stands up to IRS scrutiny.
