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#34 - Cash in the Ground: Turning Dirt Into Deductions with Alec Bean & Karly Pavlinac
Beneath your boots lies an untapped tax advantage that could be worth hundreds of dollars per acre. In this eye-opening conversation with Alec Bean and Carly Pavlinek—known as the Soil Tax Guys—we uncover the powerful financial benefits of IRS Section 180, a little-discussed provision allowing substantial tax deductions based on soil fertility.
This isn't new legislation—it's been hiding in plain sight since the 1960s. Agricultural landowners can potentially claim deductions averaging $500 per acre (with some properties exceeding $2,500!) by conducting proper soil testing immediately after purchase but before applying any fertilizer. The process identifies excess nutrients compared to university standards, turning what most consider just dirt into a valuable tax asset.
The window for claiming this deduction is remarkably narrow, which explains why it remains underutilized despite its significant potential. As Alec explains from his agronomist perspective, "Once they apply fertilizer, we've had this happen where they forgot and applied fertilizer, and we're like, 'Okay, you missed the opportunity.'" The testing itself costs just $10/acre, with additional reporting fees only if the soil qualifies for meaningful deductions.
What's particularly fascinating is how strategic landowners are leveraging these deductions to fund additional acquisitions. One client has implemented a "wash, rinse, repeat" approach—buying farmland, claiming soil fertility deductions, using the tax savings toward another purchase, and starting again. For farmland sellers, proactive soil testing can become a powerful marketing advantage, demonstrating both soil health and potential tax benefits to prospective buyers.
Whether you're a landowner, investor, or agricultural professional, understanding this provision could dramatically impact your financial strategy. Ready to see if your soil could be worth more on your tax return than you ever imagined? The ground beneath your feet might just be your most overlooked asset.
For more info and to reach Alec and Karly: https://asmlabs.net/irs-180/
Send us a text
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By Koby RickertsenBeneath your boots lies an untapped tax advantage that could be worth hundreds of dollars per acre. In this eye-opening conversation with Alec Bean and Carly Pavlinek—known as the Soil Tax Guys—we uncover the powerful financial benefits of IRS Section 180, a little-discussed provision allowing substantial tax deductions based on soil fertility.
This isn't new legislation—it's been hiding in plain sight since the 1960s. Agricultural landowners can potentially claim deductions averaging $500 per acre (with some properties exceeding $2,500!) by conducting proper soil testing immediately after purchase but before applying any fertilizer. The process identifies excess nutrients compared to university standards, turning what most consider just dirt into a valuable tax asset.
The window for claiming this deduction is remarkably narrow, which explains why it remains underutilized despite its significant potential. As Alec explains from his agronomist perspective, "Once they apply fertilizer, we've had this happen where they forgot and applied fertilizer, and we're like, 'Okay, you missed the opportunity.'" The testing itself costs just $10/acre, with additional reporting fees only if the soil qualifies for meaningful deductions.
What's particularly fascinating is how strategic landowners are leveraging these deductions to fund additional acquisitions. One client has implemented a "wash, rinse, repeat" approach—buying farmland, claiming soil fertility deductions, using the tax savings toward another purchase, and starting again. For farmland sellers, proactive soil testing can become a powerful marketing advantage, demonstrating both soil health and potential tax benefits to prospective buyers.
Whether you're a landowner, investor, or agricultural professional, understanding this provision could dramatically impact your financial strategy. Ready to see if your soil could be worth more on your tax return than you ever imagined? The ground beneath your feet might just be your most overlooked asset.
For more info and to reach Alec and Karly: https://asmlabs.net/irs-180/
Send us a text