Insights for Texas Landowners

Most Texas landowners have never heard of IRS Section 180, the Soil Nutrient Tax Deduction. It has been part of the tax code since the 1960s, yet it remains one of the least-discussed provisions available to farmers, ranchers, and agricultural landowners.

The question I get more than any other is simple: does my property qualify? The residual fertility deduction under Section 180 can be substantial, often $500 to $2,000 per acre on land purchased or inherited in recent years, but only if a handful of things line up. Here is how I walk through it with landowners. You Have to Be in the Business of Farming Section 180 only applies if you are engaged in the business of farming. That covers more ground than most people think. Row c

Most Texas landowners have never heard of IRS Section 180, the Soil Nutrient Tax Deduction. It has been part of the tax code since the 1960s, yet it remains one of the least-discussed provisions available to farmers, ranchers, and agricultural landowners.