Deducting Conservation Work

Deduct your conservation work now, or add it to your land?
Course #: FN-003
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Field Note Description

Put in terraces, a waterway, or other erosion-control work this year? There's a special election that can let you deduct that cost now instead of burying it in your land's basis — but it's a decision that sticks with you going forward. This Field Note walks through how the choice works, the cap and sale-timing wrinkle to watch for, and exactly what to ask your tax preparer before you decide.