The Ohio State University AG Law Blog recently posted an article on amortizing excess fertilizer in farmland.
In certain situations of inheritance or purchase, excess fertilizer, lime, or micronutrients added to soil that remain over and above base nutrient level can be amortized over its depletion. This can be an aggressive tax strategy because the IRS has never formally approved it, and some states heavily scrutinize it. Providing documentation of the value of the fertilizer, timing of application, any crops that have been planted, the depletion rate of the soil nutrients, and employing an experienced agronomist or soil scientist are the keys to setting yourself up for the best chance of defending this position.
To read the full article, click here.