[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.180-1]

[Page 233-234]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.180-1  Expenditures by farmers for fertilizer, etc.

    (a) In general. A taxpayer engaged in the business of farming may 
elect, for any taxable year beginning after December 31, 1959, to treat 
as deductible expenses those 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, and those expenditures otherwise chargeable to 
capital account paid or incurred for the application of such items and 
materials to such land. No election is required to be made for those 
expenditures which are not capital in nature. Section 180, Sec. 1.180-
2, and this section are not applicable to those expenses which are 
deductible under section 162 and the regulations thereunder or which are 
subject to the method described in section 175 and the regulations 
thereunder.
    (b) Land used in farming. For purposes of section 180(a) and of 
paragraph (a) of this section, the term land used in farming means land 
used (before or simultaneously with the expenditures described in such 
section and such paragraph) by the taxpayer or his tenant for the 
production of crops, fruits, or other agricultural products or for the 
sustenance of livestock. See section 180(b). Expenditures for the 
initial preparation of land never previously

[[Page 234]]

used for farming purposes by the taxpayer or his tenant (although 
chargeable to capital account) are not subject to the election. The 
principles stated in Sec. Sec. 1.175-3 and 1.175-4 are equally 
applicable under this section in determining whether the taxpayer is 
engaged in the business of farming and whether the land is used in 
farming.

(74 Stat. 1001, 26 U.S.C. 180)

[T.D. 6548, 26 FR 1486, Feb. 22, 1961]