Farm land value over time

[b116757]

30.6% these fools are crazy!!! Build a house on it use it as home of record for two years and pay nothing in capital gain on sale may have to break up large tracts and do it over a decade several times. I can’t recall max amount on a home that’s not taxed as primary residence.

 

[Wind Gypsy]

30.6% these fools are crazy!!! Build a house on it use it as home of record for two years and pay nothing in capital gain on sale may have to break up large tracts and do it over a decade several times. I can’t recall max amount on a home that’s not taxed as primary residence.

$250k individual, $500k married last i looked.

 

[Native Hunter]

Update: I just spoke with a friend of mine who is a retired county agent. He put me on to this USDA document that gives farmland values for every county in the United States from 1850 to 1982. Enjoy..............

https://www.card.iastate.edu/farmla...n-the-united-states-by-counties-1850-1982.pdf

 

[bwoods11]

I could be wrong, but I doubt they will. For current prices they can look at recent comps on similar ground sold. For historical value, The tax accessor will have historical data they can look at.

Good that he is selling now as there is a strong probability that capital gains are going up. Biden wants to raise them from 20% to 30.6% in 2024. Definitely have him talk to his accountant or tax guy. They can advise him on what can be used to demonstrate change in value to IRS.

Capital Gains Going Up

Biden is lame duck big time. He’s have to get that passed though the Republican house. No chance . I doubt he will even run for RE-election!

 

[Tree Spud]

$250k individual, $500k married last i looked.

I had a typo ... they actually want to raise it to 39.6% ...

 

[swat1018]

A 1031 exchange allows you to defer capital gains. Sooner or later, somebody is going to have to pay!

 

[Bill]

Sooner or later, somebody is going to have to pay!

leave it to a child with strict instructions to sell it the day it has been prorated to the current value.

 

[buckdeer1]

My seller just had to do this when they sold and they got the info from the FSA in that county.There is several special things that have to happen with a 1031 and from what I understand there has to be some planning.One of the best I have seen was to find a guy retiring that wants to sell and pay him the payments so that he keeps making about what he was or less and have contract that makes balloon in case of death etc. I do know you can do some trust things and transferable upon death with some minimal costs that might be worth looking at.Bill Winke has done about everything along those lines buying his farm he sold before moving.Pretty good watch on utube.Also The Land Podcast and The American Land Man podcast are pretty good

 

[Bill]

Update: I just spoke with a friend of mine who is a retired county agent. He put me on to this USDA document that gives farmland values for every county in the United States from 1850 to 1982. Enjoy..............

https://www.card.iastate.edu/farmla...n-the-united-states-by-counties-1850-1982.pdf

Wow based on that my 412 acres was worth $40K when I was born. My grand daughter is 2. Maybe I should leave it to her with strict instructions.....

 

[buckdeer1]

I put mine in my trust to be left to my daughters, and the most important rule I think to keep in family is that if one wants to sell they have to offer to sibling for 500.00 per acre before they can put on Market.

 

[Wind Gypsy]

I put mine in my trust to be left to my daughters, and the most important rule I think to keep in family is that if one wants to sell they have to offer to sibling for 500.00 per acre before they can put on Market.

Maybe i'm just a pessimist but that seems like an opportunity to create some pretty hard feelings amongst family members. If one kid needs out for financial reasons they basically get peanuts for it while the other sibling could cash in on their misfortune.

 

[buckdeer1]

They are both very responsible and have good jobs.If there was a good reason I trust them both but if something went bad such as divorce etc this can also protect them

 

[b116757]

They are both very responsible and have good jobs.If there was a good reason I trust them both but if something went bad such as divorce etc this can also protect them

You crafty bugger that is not really as bad an idea as it might first seem. There is a lot of protection built into that clause first one kid can’t just sell but if some geopolitical shit show takes place and it makes sense to sell out the kids can agree to sell. In the event of divorce the kid wouldn’t actually need to sell it they could come up with whatever capital they would require to pay the divorcing spouse off at a ridiculously low rate. Let’s just use 320 acres a half section 320/2 = 160 assuming two siblings then 160/2= 80 for the spouse thats leaving 80x$500=$40,000 kid would only have to adjust house hold assets by $40,000 on the divorce settlement and keep their half of the family property worth I would guess many times that amount. You crafty bugger food for thought for sure.

 

[Buckly]

What if the divorcing spouse wasn’t interested in selling or being bought out and wanted the land Instead of money?

 

[b116757]

What if the divorcing spouse wasn’t interested in selling or being bought out and wanted the land Instead of money?

The plot thickens

 

[Bszweda]

It sounds with a 1031 you can avoid paying taxes if you hold on till it and when you pass on you will it to someone? The person receiving the property wouldn't immediately have to pay the capital gain taxes?

 

[T-Max]

Sent from my iPhone using Tapatalk

 

[Tree Spud]

What if the divorcing spouse wasn’t interested in selling or being bought out and wanted the land Instead of money?

If you are going to leave an asset like land to 2 or more siblings, you need to have a discussion with them first and get their thoughts. For those that do not want the land, you can have the land values at TOD so that you can balance estate distributions.

In your will, you can put language the assess' the land value based on certified bank appraiser's, right of first refusal on buy-out, and buy-out terms such interest rate, term of loan, etc.

 

[mtholton]

Am I the only one that had to put a powerpoint presentation to convince his wife that buying land was a good idea? I presented the historical appreciation for the county I wanted to buy and built a business case to get her buy in... The second piece I bought she just told me to get it done quick so she didn't have to hear about it!

 

[Bill]

Am I the only one that had to put a powerpoint presentation to convince his wife that buying land was a good idea? I presented the historical appreciation for the county I wanted to buy and built a business case to get her buy in... The second piece I bought she just told me to get it done quick so she didn't have to hear about it!

The last piece I bought I didn't even tell her about until settlement was over.
Forgiveness/Permission thing. But, I don't advocate it as way to do things.