Is This The Biggest Tax Deduction for New Land Owners? - Alec Bean

In this episode we have Alec Bean from ASM Labs discuss soil fertility deprecation. It’s tax season, and in this episode, we will talk all about that overlooked aspect, especially by land owners, prospective land owners and even some accountants. Whenever you buy land, you can do soil tests to determine its fertility levels. In this case, the experts collect soil samples and test them to determine the excess amount of nutrients in the farm. Certified crop advisers then assign a value to those excess nutrients based on USDA Fertilizer pricing reports, all of which is compiled into a professional report, which can be used to claim deductions for excess fertility in the piece of land. Alec Bean joins us in this episode to talk about all that jargon and how to navigate the complexities of that tax deduction. Alec Bean, CCA and owner of Agricultural Soil Management (ASM), have been helping clients take advantage of IRS Section 180, which allows for the depreciation of excess nutrients on a farm parcel when purchased. “If you are buying land right now and not taking advantage of this part of the tax code, more than likely, dollars are being left on the table,” says Alec Bean. Key Highlights from the Show [00:01] Episode intro and pre-show talk [03:11] Meet and greet Alec Bean [05:24] Who does the IRS section 180 apply for? [07:53] At what stage is this tax law activated [10:21] After how long should you start the soil testing process after purchase? [12:02] Benefits of doing soil testing besides tax incentives from the IRS [16:06] Making sense of the report with your CPA [26:09] Conditions where land is considered a CRP [30:08] Source of fertilizer and soil test values and the frequency of update [31:47] Nutrients tested in the soil [34:52] How the soil fertility values change from state to state [38:40] Why having a fresh soil test is key and what else you need to know [41:56] How Alec got into this field [44:06] Alec’s views on the current overview and future market of the land market [49:23] Ending the show and calls to action Notable Quotes 1031 exchange is simply a deferment of tax on land that is sold. When buying land, you need to investigate the soil fertility for purposes of tax deductions. No one gets excited about soil testing, but when you talk about the possibility of saving some dollars from it, you enter into a candid conversation. The best time to buy land was a long time ago. The second best time to buy is now. Let’s Connect Alec Bean Website: https://asmlabs.net/ LinkedIn: https://www.linkedin.com/in/alec-bean-b72b20127/ Facebook: https://web.facebook.com/alec.bean.9/ IRS I80 Guide: https://asmlabs.net/irs-180/ Exodus Upgrade Program: https://bit.ly/ExodusUpgrade Connect: https://linktr.ee/TheLandPodcast https://linktr.ee/exodustrailcamera https://bit.ly/TheDeerGearPodcast