IRS Section 180 · Residual Soil Fertility

The land you just bought may come with a five-figure tax deduction.

The previous owner spent years building fertility into your soil. Federal tax law lets you deduct the value of what's left, often $750–$2,000 per acre. See your estimate in 30 seconds.

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Estimated Section 180 deduction
$0
Est. cash tax savings
$0
Est. study fee (~$40/ac)
$0
Estimate only, not tax advice. Actual deduction depends on lab-measured soil fertility, your facts, and your CPA's determination.
A simple, done-for-you process

From "just closed" to money back, in three steps

You don't lift a shovel. We handle the soil science and hand your accountant a report they can file with confidence.

1

We sample your soil

A local, credentialed agronomist pulls grid samples across your ground on a documented protocol: GPS-logged, photographed, and chain-of-custody tracked from field to lab.

2

We measure & value it

Independent accredited labs quantify residual nitrogen, phosphorus, potassium, and lime. We value only the excess above agronomic optimum, at documented replacement cost, never a cent more.

3

Your CPA files it

You receive a signed, CPA-ready report: valuation memo, depletion schedule, election language, and a complete supporting audit file. Your accountant reviews and claims the deduction.

Day 0

Engagement

Flat per-acre quote, signed engagement letter, parcel maps confirmed.

Weeks 1–2

Field sampling

Local agronomist samples on our protocol; samples shipped under chain of custody.

Weeks 2–4

Lab & valuation

Accredited lab analysis; our team builds the valuation and depletion schedule.

Weeks 4–6

Report delivered

Signed report to you and your CPA, with a walkthrough call if they want one.

Plain-English explainer

What is the Section 180 deduction?

When you buy farmland, you're not just buying dirt. You're buying the fertilizer bank the previous owner built up over years of applications. Nitrogen, phosphorus, potassium, and lime left in the soil have real, measurable value, and you paid for them in your purchase price.

"A taxpayer engaged in the business of farming may elect to treat as expenses… expenditures for the purchase or acquisition of fertilizer, lime, ground limestone, marl, or other materials to enrich, neutralize, or condition land used in farming."Internal Revenue Code, §180 (enacted 1960; paraphrased)

Normally, land isn't depreciable. But residual fertility can be deducted when three things are properly established: the extent of the residual fertilizer (measured by soil testing), its attribution to the prior owner's applications, and evidence that it's being depleted by your crops over time. That framework comes from IRS guidance dating to 1991, and it's why careful measurement and documentation, not optimism, decide what you can claim.

The deduction applies to purchased land and, in many cases, inherited land that received a stepped-up basis. Recent acquisitions are the strongest candidates, and returns can generally be amended up to three years back, so a farm bought in 2023 may still be on the table.

Want the deep dive? Read the independent university and USDA resources linked in our footer. We'd rather you check the source material than take our word for it.

Worked example: illustrative

160 acres of Iowa corn ground

Purchase price (@ $11,500/ac)$1,840,000
Lab-measured excess fertility$1,150 / ac
Documented Section 180 deduction$184,000
Cash tax savings @ 32% bracket$58,880
Land Deduction study fee (@ ~$40/ac)–$6,400
Net benefit≈ $52,000
Hypothetical example for illustration only, not a client result and not a guarantee. Your numbers depend on lab-measured fertility, your purchase facts, and your tax situation as determined by your CPA. The study fee is itself generally deductible.
Built to survive scrutiny

The defensible way to claim what your soil already holds

Section 180 is real, and the IRS looks closely at aggressive claims. Some providers value "everything in the soil." We think that's how landowners get hurt. Land Deduction is built to sit on the safe side of every line, so the deduction you claim is one you can keep.

Independent accredited labs

Every nutrient number comes from a neutral, accredited soil laboratory (never our own bench), so there's no thumb on the scale in the measurement.

Licensed agronomist sign-off

A credentialed agronomist designs the sampling protocol and signs every fertility valuation with their name and certification on the line.

Conservative valuation

We value only excess fertility above agronomic optimum, at documented replacement cost: the framework tax professionals recognize from IRS guidance.

Attorney-reviewed methodology

Our valuation methodology is maintained with outside tax counsel and updated as IRS guidance evolves, so your CPA isn't defending an improvised position.

Complete audit file

Sampling maps, GPS logs, chain-of-custody records, lab certificates, valuation workpapers. Everything an examiner would ask for, organized and included from day one.

Your CPA decides

We measure, value, and document. Your own accountant makes the tax call and files. We'll walk them through every page, and we never pressure a filing.

Our straight-shooter promise

If your ground doesn't support a strong, defensible claim, we tell you before you pay for a full study, and if a report we prepared is ever examined, our audit-response support is included at no extra charge. No asterisks.

The deliverable

What lands on your CPA's desk

One bound report, built so a busy accountant can review it in an afternoon, and an examiner can't poke holes in it.

Residual Soil Fertility Study
Prepared for [Owner] · [County], [State]
Signed: Consulting Agronomist, CCA #____
Reviewed under Land Deduction Methodology v3
  • 1
    Executive summary & valuation memoThe deduction figure, how it was measured, and the exact basis for the valuation.
  • 2
    Sampling protocol & field evidenceGrid maps, GPS logs, photos, and chain-of-custody documentation for every sample.
  • 3
    Certified lab resultsFull nutrient panels from an independent accredited laboratory, attached unedited.
  • 4
    Depletion scheduleYear-by-year write-off schedule matched to your cropping plan, ready to drop into the return.
  • 5
    Election language & CPA cover letterThe statement your accountant needs to make the §180 election, plus filing notes.
  • 6
    Audit-response fileEverything above, indexed the way an examiner would request it, included free.
From the field

What owners tell us matters most

Sample · prototype

"My accountant's first reaction was 'prove it.' The report answered every question he had before he asked it. That's what got it filed."

Row-crop owner, 240 ac, central Iowa (illustrative placeholder pending real client stories)
Sample · prototype

"They told me my pasture ground wouldn't qualify and didn't charge me a dime for the review. When we bought the tillable quarter the next spring, I knew exactly who to call."

Landowner & investor, eastern Nebraska (illustrative placeholder pending real client stories)
Good questions

What farmland buyers ask us

Yes. Section 180 has been in the Internal Revenue Code since 1960, and IRS guidance from 1991 lays out how residual fertility acquired with farmland can be deducted. It's covered by USDA educational webinars and university extension programs. What separates a safe claim from a risky one is measurement and documentation, which is our entire job.

The strongest cases are recent, arm's-length purchases of fertilized cropland that you (or your tenant) actively farm. Inherited ground that received a stepped-up basis can also qualify. Weak cases (never-fertilized pasture, ground at or below optimum fertility) get screened out in our free review.

Probably not. Returns can generally be amended up to three years back, so purchases from the last few tax years are often still claimable. Older purchases can sometimes work too, but the documentation burden rises. We'll give you an honest read before you commit.

Possibly, it depends on how your rental arrangement is taxed and whether you're treated as engaged in the business of farming. This is one of the genuinely gray areas, so we flag it on your report and your CPA makes the call with full information.

A flat, transparent per-acre fee (typically around $40/acre) quoted up front before you sign anything. No percentage-of-savings pricing, no surprise invoices. The fee is itself generally tax-deductible, and if the free review says your ground won't support a claim, you pay nothing.

Every report ships with a complete, indexed audit file: sampling evidence, chain of custody, lab certificates, valuation workpapers. If a report we prepared is examined, our audit-response support is included at no additional charge: we supply the documentation and technical explanations your CPA needs to respond.

Good CPAs should ask hard questions. This is a real tax position, not a coupon. Our reports are written for exactly that audience: conservative method, primary documentation attached, and a walkthrough call with your accountant included. If your CPA reviews everything and says no, we respect that; it's their name on the return.

Amounts you deducted can be recaptured as ordinary income at sale. Most owners still come out well ahead on time-value grounds, and many hold land for decades or pass it to heirs. But this is a real consideration: we disclose it on page one, and your CPA should model it for your situation.

Typically four to six weeks from signed engagement to finished report. Most of that is field scheduling and lab turnaround. Tell us your filing deadline and we'll tell you honestly whether we can hit it.

No, and that's deliberate. We provide the soil measurement, valuation, and documentation. Your own CPA or tax advisor makes the final determination and files the return. We're the evidence; they're the judgment.

See what's in your ground

Get a free, no-obligation estimate and an honest read on whether your farm qualifies. It takes 30 seconds, and if the answer is "it doesn't," we'll tell you that too.

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