Make Sure to Deduct Your "Water"
If you purchased farmland in the Ogallala aquifer you are entitled to a cost depletion deduction.
The United States v. Marvin Shurbet Tax Case was decided clear back in 1965. Mr. Shurbet won the case on appeal, and it allows farmers who are in the Ogallala formation in the Southern High Plains of Texas and New Mexico to claim a water depletion expense based on the “depletion” of the water since purchase or inheritance.
