Section 180 Deductions

Section 180 of the internal revenue code allows landowners to deduct soil and water conservation expenditures, including the value of the residual fertilizer in farmland. This deduction applies to the preexisting fertility of the soil, which contributes to crop yields over multiple growing seasons.

For farmers who have recently purchased or inherited land, this deduction can be a valuable way to offset income, especially if the soil already contains nutrients that will support production.