Jul 1, 2026 · 1 hr 2 min · 10 segments
Can forest landowners deduct residual soil fertility as some farmers do? In this episode, Shaun and Brady examine the growing interest in the residual fertility tax deduction, explain the relevant IRS…
Sean TangerHostBrady SelfHost
Um, so today what we're going to talk about, and I've got a slideshow that I'm just, because we're talking taxes and because there's a lot of legalese, uh, in this, I just want to have as, as those kind of benchmarks, like I would in a, uh, actual extension talk, but, uh, we're going to be talking about the, in agriculture, a term or phrase called the residual fertility deduction.
And this is kind of a thing that's been hot in agriculture land ownership for several years now, say three or four, maybe closer to three.
And it's just now starting to get looked at by forest landowners and forestry consultants.
So again, As I've stated in the past, I've done a lot of educational materials on forced taxation, but I'm neither a certified public accountant or a tax attorney.
Always seek the help of a professional who is paid and credentialed appropriately for this kind of material.
We're here to just kind of give you awareness and some knowledge, but For specifics to your circumstances, you need to need to work with a professional.
We got several emails and I'll just read one to you, kind of give you a little bit of a background here.
I had a tree farm landowner call me this morning asking about IRS Section 180 tax provision that allows taxpayers in the business of farming to immediately deduct the cost of fertilizer, lime, and other soil conditioning materials rather than capitalizing.
Is it just for ag lands like row crops, et cetera? Any guidance would be helpful.
I won't read their name, but so-and-so was curious if any of us were familiar with federal tax code 180 for expensing soil nutrients.
These were developed for ag, but has some clients inquiring about the prospect of taking advantage of them for forest land purchases.
The question that comes to the fore when considering this is whether there are standard soil testing practices for quantifying whether a site has excess soil nutrients that could serve as a tax write-off.
Um, so today what we're going to talk about, and I've got a slideshow that I'm just, because we're talking taxes and because there's a lot of legalese, uh, in this, I just want to have as, as those kind of benchmarks, like I would in a, uh, actual extension talk, but, uh, we're going to be talking about the, in agriculture, a term or phrase called the residual fertility deduction.
And this is kind of a thing that's been hot in agriculture land ownership for several years now, say three or four, maybe closer to three.
And it's just now starting to get looked at by forest landowners and forestry consultants.
So again, As I've stated in the past, I've done a lot of educational materials on forced taxation, but I'm neither a certified public accountant or a tax attorney.
Always seek the help of a professional who is paid and credentialed appropriately for this kind of material.
We're here to just kind of give you awareness and some knowledge, but For specifics to your circumstances, you need to need to work with a professional.
We got several emails and I'll just read one to you, kind of give you a little bit of a background here.
I had a tree farm landowner call me this morning asking about IRS Section 180 tax provision that allows taxpayers in the business of farming to immediately deduct the cost of fertilizer, lime, and other soil conditioning materials rather than capitalizing.
Is it just for ag lands like row crops, et cetera? Any guidance would be helpful.
I won't read their name, but so-and-so was curious if any of us were familiar with federal tax code 180 for expensing soil nutrients.
These were developed for ag, but has some clients inquiring about the prospect of taking advantage of them for forest land purchases.
The question that comes to the fore when considering this is whether there are standard soil testing practices for quantifying whether a site has excess soil nutrients that could serve as a tax write-off.
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