Ranch & Land Acquisition Structuring
Set up your land so it can be run, and documented, as a genuine operating business.
Many ranch and rural landowners hold their property as an investment or a personal hobby. Under the tax rules, many costs of holding land that way may be limited or not deductible at all.
We help structure the property so it can be run, and documented, as a genuine operating business. When it is, ordinary and necessary business expenses may be deductible, and other strategies that apply only to active businesses may be worth evaluating. It is often the first step before we look at cost segregation and agricultural R&D credits. Whether an activity is treated as a business depends on the facts, including the profit objective (IRC §183).
Not buying land? If you have significant W-2, business, or investment income, request a look-back for high-income earners.
What We Deliver
Operating Entity (LLC)
The entity that runs day-to-day operations. All business income and deductible expenses flow through here.
Land Holding Entity (LLC)
A separate entity that holds title to the land, insulating it from operating liabilities.
Entity Structure
We design the entity structure and how the entities work together for tax purposes.
Entity Setup and FEIN Registration
We guide registration of Federal Employer Identification Numbers for each entity.
IRC §183 Business Plan
We draft a business plan that documents the profit objective and how the operation is run, which the IRS weighs under IRC §183.
Bookkeeping Setup (optional)
Monthly bookkeeping for your operating entity, available under a separate work order. Clean, consistent books help document business expenses and the profit objective throughout the year.
Timeline and Engagement
Approximately 30 days from signed engagement to a working business structure (entity, business plan, FEIN), depending on filings. Fees are quoted in writing before any work starts.
What may be worth evaluating next
Once your operating business is in place, these may be worth evaluating, depending on your facts:
- Ordinary and necessary operating expenses, such as feed, labor, repairs and maintenance, and the right treatment of livestock, wildlife, fencing and equipment purchases.
- Depreciation on improvements (roads, wells, barns, fencing), including whether a cost segregation review is worth it
- Whether agricultural R&D credits may apply
Timeline and engagement
Approximately 30 days from signed engagement to a working business structure (entity, business plan, FEIN), depending on filings. Fees are quoted in writing before any work starts.
Is this a fit for a conversation?
If you own farm or ranch land, or you have significant W-2, business, or investment income, a free two-year look-back is usually worth a conversation. We won't say whether any strategy applies until we've reviewed your facts.
Already have a CPA?
Good. We are a second set of eyes, not a replacement for your CPA. Your CPA stays your CPA.
What does it cost?
The look-back is free, with no obligation. If a deeper review makes sense, we quote it in writing first.
What happens on the call?
- We review your last two returns for you before the call.
- On the call, we walk you through specific tax strategies you aren't using but could, and what each could mean for you.
- No obligation. You and your CPA decide what, if anything, comes next.
Time and documents
30 minutes by video call, once your look-back is done. We'll let you know which documents we need.
Use the short form below to request your free look-back.
Shanyn Stewart is an Enrolled Agent, enrolled to practice before the Internal Revenue Service. DeepYield LLC, 4306 Yoakum Blvd, Suite 170, Houston, Texas 77006.