Harvesting Soil Nutrient Deductions: Secret Tax Benefits Available to Farmers or Tools for Preserving America's Rural Lands? Or Both? (Texas and Beyond)

Many farmers and ranchers currently own or are contemplating acquiring land that could significantly benefit from tax deductions, though long present in the Internal Revenue Code, that are not widely understood or used by American farmers and ranchers. The cash resulting from the use of these benefits not only returns cash to a landowner's pocket, but they also can provide additional working capital, extra buying power needed to buy more farm and ranch land, more funds for purchasing new equipment, upgrading farm and ranch infrastructure, or adding to a livestock herd. 

At a national policy level, the benefits resulting from the "legacy nutrient deduction" options of ered by the Code, especially in IRC § 180, may be a useful financial tool used by farmers and ranchers to remain competitive when purchasing rural land whose prices continue to rapidly trend upward. This tool could significantly bolster farm and ranch operations that often lack the capital to keep rural land in the hands of those who historically have been this country's primary food producers. Could this strategy also be the first of many steps needed to achieve other abstract, but critical, goals? These include, among others, preserving rural America and its way of life and its values, as well as this country's food security.

Learning Objectives:

1. Discover a tax strategy reserved for owners of farm and ranch land
2. Identify the profile of clients most likely to benefit from these tools
3. Break down the risks associated with not using the right advisors in pursuing these strategies
4. Predict the resulting benefits from a well-planned and well-thought-out strategy of utilizing legacy soil nutrient deductions