1031 Exchanges, The Family Farm, & You
There are several reasons why farmers may want to consider a 1031 exchange. For example, typically when farmers sell a piece of property (or would rather have a different piece of property), they don’t want the cash. Rather, they want another piece of property.
Call toll free (1-866-244-3517) and talk to Jeff Baker, CPA to find out if a 1031 exchange is right for you.
The 1031 exchange allows them to trade a more valuable piece of property for a larger piece of property or an older tractor for a newer tractor. So it’s basically a way of keeping taxes out of that transaction.
Inheritance & 1031 Exchanges
If a family inherits a farm, the 1031 exchange can also be very helpful. For instance, maybe there’s one member of the family that’s a farmer and the other brothers and sisters are not. In this case, it’s possible that a few of the heirs would rather have the cash, but the farmer wants to keep farming. The heir or heirs who do not want to receive cash could then do a 1031 exchange. One might take his proceeds and exchange it into a piece of farm real estate, and another might take his proceeds and exchange it for a rental property or some other type of real estate. It just has to be an exchange of income producing for income producing.
Talk to a 1031 Expert in the Evansville Area
Need some advice about the family farm? Contact the experts at Baker Retirement and Wealth Management, P.C. We have been serving the greater Evansville area (Vanderburgh County, Warrick County, Posey County, Spencer County, Henderson County, and beyond) with guidance regarding tax laws, farm accounting strategy, small business tax advice, and more for nearly thirty years.
You don’t have to manage your money alone. Call Baker Retirement and Wealth Management today at 1-866-244-3517.Request a 1031 Consultation