How The Ag Tax Break Applies
Section 180 is an often overlooked tax deduction, particularly among livestock producers and ranchland owners. While row crop farmland drives more residual fertility deduction claims, landowners who purchased or inherited grazing ground may also be eligible for the Section 180 benefit.
Eligibility ultimately depends on the landowner, the land, and how it’s being used.
Grazing and ranchland owners need to meet basic Section 180 eligibility requirements.
Excess nutrients must be documented.
Reports should reflect residual nutrients above a one-year crop-use baseline, valued and subject to basis limitations.
Ownership must meet timelines.
Grazing and ranchland purchased or inherited since 1960 may qualify. Advanced Agrilytics can prepare IRS-compliant reports for qualifying properties acquired within the past 15 years.
Value must reflect price at time of acquisition.
For example, if you acquired land five years ago, you'd calculate based on the market value at that time, not the current market value.
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 helps simplify Section 180 claims.
The claims process keeps many farm and ranch owners from pursuing Section 180 tax 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’s shaped to withstand IRS scrutiny.
