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Farmland + §180 Fertility Deduction

Buy farmland; deduct residual soil fertility year 1.

Overview

§180 lets a farmland buyer deduct the value of residual soil fertility (nutrients: N, P, K) in the year of purchase — often 20–40% of purchase price. Requires a soil study by a qualified agronomist. Land itself doesn't depreciate; this is one of the only ways to accelerate deductions on raw farmland.

Best fit
Farmland investorsActive farmers (material participation)Family land buyers
Estimated impact
$40K–$200K per $1M of farmland purchased

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