Legacy Nutrient Deduction

[Stormy Kromer]

Now this is a long shot since this a very specific question about agricultural land.

Does anyone have any experience with the Legacy Nutrient Deduction available for newly aquired farmland ?

With new technology available today to determine soil's fertility it may be more feasable to amortize a newly aquired piece of land's existing fertility. It is a long existing law (1960) but hasn't been used much because it is so difficult to determine. Well, with today's technology it is becoming more possible and there are very legitimate companies providing their services.

For any farmland owner it is worth looking into. Active farmer or not. I am.going to I may be the only one of this forum, but if anyone else here owns Ag land I'd suggest you look into it.

Might seem small, but anything involved with farmland today is big.

 

[Stormy Kromer]

OP here.

No surprises that their are no comments, the farming community is very small, and no farmers retire early anymore. So there is probably not an active farmer on this forum. I thought I'd toss it out there anyway.

 

[Mark1]

OK, I'll play.

If you plant soybeans can you also increase you cost basis with some of the seed cost, since you're adding nitrogen to the soil?

 

[Stormy Kromer]

OK, I'll play.

If you plant soybeans can you also increase you cost basis with some of the seed cost, since you're adding nitrogen to the soil?

No. You deducted the cost of your soybean seed on schedule F the year you bought it. If it added to your farm's fertility and increased its value at sale time, it would be part of the LTCG on your farm.