§180 Expenditures by Farmers for Fertilizer, Etc.

Summary

A farmer in the business of farming can choose to treat costs that would normally be capital expenses as regular deductible expenses. This choice applies to money spent or owed in the tax year for buying or getting fertilizer, lime, ground limestone, marl, or other materials that improve or condition farm soil, and for applying those materials to farm land. If the farmer makes this choice, those costs can be deducted on the tax return. "Land used in farming" means land the farmer or a tenant uses before or at the same time to grow crops, fruits, other agricultural products, or to feed livestock. The farmer must make the choice when filing that year's tax return (including any extensions) and must follow the method the Secretary sets by rules. The choice cannot be undone unless the Secretary agrees.