Deduct residual fertility (P, K, lime) in acquired farmland — often 10–25% of purchase price.
IRC §180 lets buyers of active farmland deduct the value of residual fertilizer (phosphorus, potassium) and lime in the soil as an ordinary expense in year of purchase. Requires soil test at acquisition and a §180 election. Typical benefit: 10–25% of purchase price deductible immediately. On $1M farmland: $100–250K deduction = $37–92K tax savings for high-bracket buyer. Underused because most CPAs don't know it.
Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.
Buy farmland in QOZ tract — defer cap gains + 100% tax-free appreciation at year 10.
Farmers deduct up to 25% of gross farm income for conservation expenses (typically capitalized).
Elect §631(a) — treat timber cut as capital gains transaction vs ordinary income.
Enroll land in ag-use / current-use assessment — property taxes cut 50–90%.
Enroll marginal cropland in Conservation Reserve — $100–$300/acre/yr rental income + cost-share.
$600K farm ownership + $400K operating loans at Prime for beginning farmers.
Get paid $15–$40/acre/yr to adopt cover crops, no-till, rotational grazing — earn carbon credits.
Long-term ground lease to solar developer — 10–30x normal cash rent, land intact.