EXCESS SOIL FERTILITY STUDY

Unlock Tax Savings Through Section 180

AGRONOMIC EXPERTISE MEETS SMART TAX SAVINGS

When purchasing or inheriting farmland, you may be eligible for a tax deduction on excess or residual soil fertility, just like other depreciable assets (fences, pivots, terraces, etc.). This deduction can lead to substantial tax savings while also helping you manage soil nutrients more efficiently.

HOW CROP QUEST’S FERTILITY STUDY HELPS YOU.

By performing an excess (residual) fertility study, we don’t just help you claim tax deductions—we also give you an agronomic roadmap for long-term productivity. The same data used for tax savings can be leveraged for:

THE EXCESS SOIL FERTILITY STUDY:

Your Path to Smarter Land Management

When you purchase a new piece of land, the clock starts ticking on making it profitable. Whether you plan to pass it down through generations or sell it someday, the decisions you make early on can significantly impact your long-term financial outcomes.

If you plan to sell the land soon, taking a tax deduction may not be in your best interest since it could reduce your basis and increase your tax liability upon sale. However, for those planning to hold onto the land for the long haul, a Section 180 tax deduction on excess soil fertility can be a strategic advantage.

Our process is designed to help you understand and maximize this opportunity.

HOW IT WORKS

Step 1: Do You Qualify?

Determine if your land purchase meets IRS guidelines for a Section 180 deduction. To qualify:

  • Beneficial Ownership: You or the heir must not have farmed the land during the prior crop season.
  • Soil Testing: The land must be grid sampled to assess soil fertility.
  • Fertilizer Use: Residual fertilizer must be deemed ‘exhausted’ (used by the crop).

If you meet these criteria, you’re ready to move forward with confidence, knowing this study can provide financial and agronomic benefits.

Step 2: Our Process

Once you qualify, we follow a streamlined, three-step approach to assess your land’s soil fertility:

Step 3: Working With Your Accountant

In the end, you’ll receive three clear, concise reports designed to simplify decision-making. We stay away from lengthy, overwhelming reports with no context. Instead, our reports provide actionable insights with agronomic context and a straightforward summary tailored for your accountant. With the right information at their fingertips, accountants can confidently apply the Section 180 deduction.

MAXIMIZE YOUR LAND’S POTENTIAL AND TAX BENEFITS WITH THE RIGHT TEAM

Agronomist

Assess your soil’s fertility levels and ensure you capture the full value of excess nutrients for better yields & tax benefits.

Realtor

Understand how soil fertility impacts land value & sales, ensuring you maximize returns and tax advantages when selling.

Accountant

Navigate Section 180 deductions with expert guidance, turning excess soil fertility into real tax savings for your operation.

Learn more about our Excess Soil Fertility Study.