Turning a profit in agriculture is never easy. At Remote RanchHand, we can boost your bottom line by maximizing your agricultural tax deductions. Our agricultural appraisals can be another valuable tool in your operation. As a wise farmer once said, “you have to make money with your back, and you have to make money with your pencil”

Many farmers and ranchers are intimately aware of the tax codes associated with agriculture. However, most are focused on their operational efficiency and costs and may be unaware of some tax deductions that could be substantially beneficial to their farm or ranch.

When someone purchases or inherits land to start or expand their operation, the land itself is not deductible. Even with the tremendous resources involved with the purchase of property, deducting the property from their operational income is not permissible.

However, many assets that conveyed with the property that are used in an agricultural operation, whether it be livestock, row crops, or any agricultural endeavor, are deductible under IRS guidelines.

If you were to install a livestock fence on your new property, that is a tax deductible expense. When you purchase or inherit new property that already has a fence on it, that fence is treated as a deductible asset as well. The IRS considers the fence to be part of the purchase price.

Some of the assets that are conveyed with property could be barns, buildings, machinery, equipment, livestock, trucks, trailers, fencing, and water assets.

One of the lesser known deductions on newly acquired land is what is deemed by the IRS as “Excess Soil Nutrients”. Determining this deduction can be a complex process that requires intensive documentation. However, the soil nutrient deduction can be among the most substantial and valuable of all the farm’s assets.

At Remote RanchHand, we handle the agricultural appraisal for you. We provide a fully documented report that you can share with your tax advisor. All our calculations and formulas are documented in the appraisal report. No “trade secrets” or “proprietary algorithms” that you may hear from other companies. When dealing with the Internal Revenue Service, there are no secrets.