How Section 180 Applies
The Section 180 tax deduction is more typically associated with traditional farmland. But taxpayers who own and manage timberland in the United States may be eligible for these farm tax benefits, if they meet baseline (and timberland-specific) criteria.
Basic Section 180 eligibility requirements apply.
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.
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 support a defensible valuation.
Timberland purchased or inherited since 1960 may qualify. Advanced Agrilytics can prepare IRS-compliant reports for qualifying properties acquired within the past 15 years.
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 complex claims process keeps many timberland 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, using unbiased, science-backed analysis designed to withstand IRS scrutiny.
