Sale of a Farm If you sell your farm, you cannot adjust the basis of the land atthe time of the sale for any unused carryover of soil and waterconservation expenses (except for deductions of assessments fordepreciable property, discussed earlier). However, if you acquireanother farm and return to the business of farming, you can starttaking deductions again for the unused carryovers. Gain on disposition of farm land.cheap hotel in ReadingIf you held the land 5 years or less before you sold or disposed ofit, gain on the sale or other disposition of the land is treated asordinary income up to the amount you previously deducted for soil andwater conservation expenses. If you held the land less than 10 butmore than 5 years, the gain is treated as ordinary income up to aspecified percentage of the previous deductions. See Section 1252property in chapter 11.