26 U.S.C. § 180 — Expenditures by farmers for fertilizer, etc.

submitted 66 years ago by Pub. L. 86-779 to r/title-26-INTERNAL-REVENUE-CODE · 194 words · no verdicts yet

in plain englishAI-generated · not legal advice

A farmer may deduct, instead of capitalizing, money spent on fertilizer, lime, and similar soil-improvement materials for farmland. This applies to land used to grow crops or feed livestock. The farmer must make this choice by the tax return's due date, and once made, it usually cannot be undone.

(a) In general A taxpayer in the farming business may choose to treat spending on fertilizer, lime, ground limestone, marl, or similar materials — bought to enrich, neutralize, or condition farmland, or to apply those materials to the land — as a deductible expense instead of a capital cost. The taxpayer then deducts that spending. (b) Land used in farming "Land used in farming" means land the taxpayer or their tenant uses — before or at the same time as the spending in (a) — to grow crops, fruit, or other farm products, or to feed livestock. (c) Election The taxpayer must make this election by the deadline (including extensions) for filing that year's tax return, following the manner the Secretary requires by regulation. Once made, the election cannot be canceled without the Secretary's consent.

the actual law source: uscode.house.gov ↗public domain

(a) In general

A taxpayer engaged in the business of farming may elect to treat as expenses which are not chargeable to capital account expenditures (otherwise chargeable to capital account) which are paid or incurred by him during the taxable year for the purchase or acquisition of fertilizer, lime, ground limestone, marl, or other materials to enrich, neutralize, or condition land used in farming, or for the application of such materials to such land. The expenditures so treated shall be allowed as a deduction.

(b) Land used in farming

For purposes of subsection (a), the term “land used in farming” means land used (before or simultaneously with the expenditures described in subsection (a)) by the taxpayer or his tenant for the production of crops, fruits, or other agricultural products or for the sustenance of livestock.

The election under subsection (a) for any taxable year shall be made within the time prescribed by law (including extensions thereof) for filing the return for such taxable year. Such election shall be made in such manner as the Secretary may by regulations prescribe. Such election may not be revoked except with the consent of the Secretary.

Source credit: (Added Pub. L. 86–779, § 6(a), Sept. 14, 1960, 74 Stat. 1001; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

history & why it existsrecord from the source credit

1960Enacted · Pub. L. 86-779 · 74 Stat. 1001
1976Amended · Pub. L. 94-455 · 90 Stat. 1834

A history note hasn’t been published yet. The record shows enactment by Pub. L. 86-779 on 1960-09-14.

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