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| Can you explain further?
My understanding was if you start renting a piece, soil sample it and have a K level 250ppm, then you farm it at maintenance rates for 10 years, then you purchase it, soil sample still shows 275ppm... in this example you could depreciate your excess K from 250 to the state optimal, but not from 275, because your fertilizer applied to build that additional 25ppm was expensed in prior years by you on schedule F and cannot be attributed to prior operator.
Is this your understanding? I have not done this on prior rented land personally. | |
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Excess nutrient depreciation
