RESIDUAL FERTILITY TAX DEDUCTIONS
Turn residual soil fertility into real tax savings
You may already own a valuable, depreciable asset beneath your feet
What would a $1800/acre tax deduction mean for you?
Residual Fertility Tax Deductions have been around for quite some time, but only in recent years have many CPAs and landowners begun to fully recognize the opportunity.
Just as farmers can deduct the value of tangible assets like fencing, buildings, equipment, or drainage tile, farmland itself can include another often-overlooked asset: existing soil fertility. When land is purchased or inherited, there are frequently nutrients already present in the soil, such as calcium, zinc, manganese, copper, and other elements resulting from prior management.
That residual fertility carries a measurable monetary value, and under the right circumstances, that value may qualify as a legitimate tax deduction.
WHY THIS IS MEANINGFUL FOR LANDOWNERS
Residual fertility can represent some very meaningful financial value
By identifying and documenting this deduction can:
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Reduce taxable income
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Improve cash flow following a land purchase or transition
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Capture value from prior stewardship and fertilizer investments
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Complement long-term conservation and management goals
IS THIS FOR YOU AND ARE YOU ELIGIBLE
Eligibility depends on how the land was acquired and managed
This deduction may be for you if:
- You purchased land in agricultural production
- You are a farmer or land investor
- The land was managed in a way that produced excess fertility
- You could benefit from an average tax deduction of $1,800/acre
HOW STEWARD LINK® HELPS YOU REALIZE THIS TAX DEDUCTION
Assessment & Onboarding
We start by reviewing and discussing with you about the property history and the acquisition details. We will also have you fill out the details associated with both so we can establish the best way forward.
Soil Data Collection
Once the assessment has been completed, we will work to gather all necessary soil data, which could consist of data we need from you in addition to pulling soil samples on a 10-acre grid.
Soil Data Analysis
Once all necessary soil data has been collected, our agronomists work to quantify and establish defensible fertility valuations.
Fertility Valuation Report
Upon completion of our Residual Fertility Tax Deduction Valuation, we will provide you with a clear and organized report for your CPA or tax advisor.
We focus on accuracy, defensibility, and clarity, so your tax professional has what they need to apply the deduction appropriately.
WORKING ALONGSIDE YOUR CPA
Steward Link does not provide tax advice or file tax returns. We work in coordination with your CPA or tax professional by supplying the technical analysis and documentation needed to evaluate and support a residual fertility deduction.
Your CPA ultimately determines:
- Whether the deduction applies to your tax situation.
- How it is claimed
- When it is applied
CPAs and tax advisors seeking consultation with our tax attorney or an opinion letter related to this deduction are encouraged to contact us for support.
A DEDUCTION WORTH EXPLORING
Not every property or land owner qualifies, but the only way to know is to take a closer look!