Deducting Excess Soil Fertility

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If you purchase or inherit a new farm, you might be able to deduct the excess soil fertility. However, there is very little guidance on this deduction from the IRS.
If you purchase or inherit a new farm, you might be able to deduct the excess soil fertility. However, there is very little guidance on this deduction from the IRS.
(Farm Journal)

In today’s blog post we provide an audio webinar on the ability to deduct excess fertilizer when purchasing or inheriting farm property.

The audio recording reviews the rules and the lack of guidance from the IRS on this deduction.

Note: A farmer who purchases a farm from a landlord who has been deducting the fertilizer is not allowed to do this deduction. It is only permitted when you purchase land you did not farm.

You are required to be a farmer, so a cash rental landlord cannot take this deduction.

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