Legacy Soil & Nutrient Deductions are a basis recovery strategy. When farmland, ranchland, or timberland is purchased or inherited, part of the land's basis can be attributable to residual agriculturally necessary nutrients already in the soil at acquisition. Those nutrients are a wasting asset consumed through production over time—and the tax benefit is recovering that portion of basis as it is depleted or amortized.
The approach combines grid-based soil sampling, hindcasting of historical fertility levels, and valuation aligned with IRS Private Letter Ruling 9211007. Deductions can be claimed under Section 180 (current year expensing for farmers), amortized using Sections 167 or 168, or treated as depletion under Section 611 for timber operations—depending on taxpayer classification and acquisition date.
This service applies to cropland, ranchland, and timberland with documented fertility history and substantial land basis. The resulting deductions are documented with independent agronomy reports, defensible valuation methodologies, and audit-ready compliance files.