Individuals / Land / Tax Codes / Deductions

A farmer or landowner who acquires (by purchase or inheritance) agricultural land.

Qualifying land includes farmland, ranchland, pastureland, and in some cases, timberland where timber is sold. 

Under IRC 180 the owner of qualifying land may elect to deduct the full value of their excess soil nutrients "excess nutrients above a baseline) in the year of acquisition. These deductions recognize the real, measurable economic value of pre-existing fertility.  To take a one-time deduction the land must be acquired and tax return filed in the same year.  

Under IRC 167 / 168 the farmer or landowner is allowed to set up a depreciation schedule when the land was acquired in a year prior to filling the current year's tax return.