#225 - The Farm Tax Deduction That Gave A Rancher A $2.5 Million Dollar Tax Deduction

Welcome to the land podcast, a platform for people looking to educate themselves in the world of land ownership, land investing, staying up to date with current land trends in the Midwest, and hearing from industry experts and professionals. 

On today's episode, we are back in the studio with Alec Bean.

We discuss:

Section 180 has existed since the late 1950s.

Excess soil fertility can create significant tax deductions.

Most farmland owners have never utilized the deduction.

Recreational farms with tillable acres can qualify.

Timberland generally does not qualify.

Active participation creates larger tax advantages.

Some buyers use soil tests before making offers.

Midwest farms commonly show $500-$2,500/acre in value.

One client generated over $2.5 million in deductions.