Land
-
Community Property Trumps Separate Property
Community property states have advantages over separate property states when it comes to step-up in value of an estate. Now you don’t need to live in one of those states to take advantage of it.
-
Farmland Values Continue to Slump
The Federal Reserve Bank of Kansas City released their latest Ag Credit Survey yesterday. The news was not good for farmers, however, it may be starting to get less “worst”.
-
A Farmland REIT is Now Publicly Traded
Gladstone Land Corporation (LAND) just recently raised $50 million in their IPO at a $15.50 price to invest solely in farmland. To date, they have purchased acreage in California and Florida (primarily berry related) and just closed on a blueberry farm in Michigan. Since its IPO, the price has increased almost 10% to close at $16.80 on […]
-
When Does A Large Price Increase Spell Trouble?
The Kansas City Federal Reserve 4th quarter survey of Ag conditions spotlighted an ever upward trend in farm land prices. On a year-over-year basis, irrigiated farmland in Kansas, Nebraska and the Mountain states all saw increases over 30% and non-irrigated land increased by more than 20% in all states. For the last two plus years, land […]
-
When an UPREIT Might Make Sense
Many farmers have seen substantial appreciation in their farmland values over the last decade. Many of these farmers are approaching retirement age and would like to “cash” in on these values and diversify their holdings. They do not have any children to take over the farm and are worried that values in their immediate area […]
-
1031 Tax-Deferred Exchange Does Not Always Defer All Taxes!
With farmland prices at or near an all-time high, many farmers are considering selling their farmland and rolling over the gain into other real estate on a tax-deferred basis using a Section 1031 tax-deferred exchange. Under these rules, the farmer has 45 days from the date of closing (not when you sign the offer) to […]
-
Is a Dynasty Trust Right For You?
A common question that arises in our meetings with clients is about making sure that the farm remains in the family for multiple generations. One option for accomplishing this is the use of a Dynasty Trust. Many states such as South Dakota, Delaware and Alaska allow for trusts that are either perpetual or last for […]
-
Annual Exclusion Does Not Eat Into Lifetime Exclusion.
We had a reader ask the following question: “Am I correct in that this accumulation of gifts during lifetime does not include those under the Annual Gift Tax Exclusion ($13,000)?” It seems like most of my posts lately deal with estate and gift taxes, but this is a very important subject and with the end […]
-
Updated 2013 Estate and Gift Tax Inflation Adjustments
The IRS recently released Revenue Procedure 2012-41 that outlined all of the inflation adjusted items contained in the tax laws. There were a couple of provisions related to gift and estate taxes that apply to farmers. Beginning in 2013, you can now give up to $14,000 any individual(s) during the year and not have to […]
-
China Companies Continue to Buy Up Farm Land
The Wall Street Journal had an article yesterday on how Chinese companies are continuing to invest in South America especially in buying up farm land to feed their people. Through the twelve month period ended May 31, 2011, the China’s investment in Latin America had hit $15.6 billion. During the last three years, more than […]