Iowa 136a - What will is go for?

I sold beach property last spring and bought another immediately. If I held out for a price drop I'd be priced out of the area. Realtor called last week and said what I bought is worth 25% more in a year. This can't continue. But I'm not getting priced out so I'll hold and see where the cards fall.

We just bought a beach front property 18 months ago ... crazy but realtor gave us a current market estimate of 2.5 times what we paid.
 
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Also loosing a million to capital gains taxes in a sale like that would hurt my soul just a little bit.
I would shed a tear selling a farm that's been in their family for decades...they'll never get it back.
 
I would shed a tear selling a farm that's been in their family for decades...they'll never get it back.
Never!

And that’s the dilemma. Buddy of mine was left a beach house with his siblings. It was their grandfather’s then their mothers.

They couldn’t agree on anything. Sold it in 2010 for $700k. 1 house from the ocean.

Today it’s valued at 1.8. None of them will ever have a beach house again.
 
I saw a guy sell his farm (age 93)for around 1 million. He had bought it for 250k… so 750k in capital gains . I don’t see any way he can come out ahead after paying the capital gains! Unless he’s Benjamin Button!
 
I saw a guy sell his farm (age 93)for around 1 million. He had bought it for 250k… so 750k in capital gains . I don’t see any way he can come out ahead after paying the capital gains! Unless he’s Benjamin Button!
He would be netting around 640k assuming it’s taxed at 15% and he didn’t do any improvements to the farm.
 
I believe if he lived on the place and was married he would pay no capital gains on $500,000 of that sale but I am far from a tax guru.
 
There is a 400 acre tract, 260 rough tillable 140 timber/pasture that was just listed, the mother that owned it passed away and the kids are selling it. The are asking 4.5 mil. $11,250/acre. It has been nuts around here what land prices have done. How can this continue? I'm glad I got my little chunk when I did.

That is exactly what has happened in my area in the last two years.
Rough ground that can only be used for hunting/recreation is going for $10K and up now.
It is crazy to me that people are paying that, the county is loving the tax base though.
 
He would be netting around 640k assuming it’s taxed at 15% and he didn’t do any improvements to the farm.

I should have been more clear . So this property had around $30,000 in income.

In this case he will pay $125-150k in capital gains.

If he died and passed it in to his sons, they get the stepped up basis . Plus still own it and have the income.

The math is terrible as a family. Unless he absolutely needed the money. I know in this case he didn’t.
 
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He was probably liquidating assets for estate planning.
 
He would be netting around 640k assuming it’s taxed at 15% and he didn’t do any improvements to the farm.
In NY you can add another at least 8% for the State. It’s Considered ordinary income Here.
 
He was probably liquidating assets for estate planning.
I don’t think so… but I’m not sure. I could not add it up in any scenario where he “should” sell? Unless he lived well into 100.

Plus what would he (age 90s)invest in that gave him a 3% plus return with relative safety ?
 
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