Selling the family farm?

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Chuckie":1ckkthq4 said:
He could cut the trees and make it look like a tornado ripped it up.

Worse than that. More like an atom bomb.
Had to clear cut some long leaf pine not long ago that the beetles were killing. The land and trees were priceless because of sentiment. When I saw the devastation left behind, I felt like I had died.
 
denoginizer -- If you decide to sell the family farm, and since it would be your intention to invest the proceeds in another farm, you may want to get with your accountant or attorney to discuss the possibility of a simultaneous three party like-kind exchange or even a deferred like-kind exchange. The appeal of those exchanges is that you could defer payment of federal and state income taxes on the sale. Of course I have no idea what your proposed sales price is, or your cost basis for the farm, but without a like-kind exchange if there would be a significant taxable gain on the sale you could end up paying quite a bit in taxes, even with the low 15% capital gains tax rate.
 
Ryder, I know exactly what you are talking about. There are several thousand acres across the road from me that I do not own. How I wish I did own it. It has many acres of woods, but mostly crop land. The field directly in front of me has about 70 acres of crops, but is bordered by woods filled with dogwoods, redbuds, beech, hickory and oaks. No houses around. I love to go out and see the seasons change along the woods. One morning I came in from work, I saw machinery being unloaded for cutting trees. I felt like I had been told that I had an incurable disease. I could hear the saws cutting and I could see the machinery bringing the trees to the edge of the road. Each morning I dreaded coming home to see what they destroyed. I had trouble sleeping too. I then thought about how I had made fun of tree huggers. I realized that these people probably lived and were raised around the forests and loved driving home down the roads covered by the canopy of hardwoods. Then someone comes along that doesn't give a damn about what everyone loved about the area. They purchase the land and strip it. My older brother used to go on about how people over react to things such as tree huggers. He is a "Ditto Head". When I called to tell him that they were cutting the trees in the woods, I thought he was going to cry. He used to make fun of the people trying to protect the "Spotted Owl." After thinking about it, I have a feeling that if they latched on to something like the Spotted Owl, it saved the forest. I would love to have seen a Spotted Owl or Snail Darter with legs in the woods. Heck, even Elvis!! I should have told them I saw a Dodo bird in there. The woods were not stripped out as bad as I thought. Now, it looks like a lot has filled back in, but I still don't want to go into the woods to see what was taken out. They do not clean up behind themselves, but the new growth just covers it up.
 
A couple of statements, often times conflicting, I often deal with in life's journey:

* Life is for the Living - (I think Thomas Jefferson said this)

and

* Greed is the most destructive force in the universe.

Good Luck with you decision.
 
Chuckie":1oxxhro1 said:
I have trouble selling land. There will be no more land. Keep what you have and add to it.

Absolutely right. Some of the land we have has been in the family since the 1880's and I'm the sixth generation on that soil. I'd sooner cut off a leg than sell it. If I sold land my ancestors poured their sweat and blood into, for the intention of gaining monetary profit, I don't think I could live with myself.
Maybe I don't see things the same as most people but land is not a simple commodity. It's a living thing meant to be nurtured so it can nurture us back.
 
And one more thing while I'm at it...

I have trouble really seeing myself as an "owner" of land. I'm just one in a long line of stewards. My job is to leave the land in better shape than I found it for the next steward.
 
Arnold Ziffle":oxmp51rk said:
denoginizer -- If you decide to sell the family farm, and since it would be your intention to invest the proceeds in another farm, you may want to get with your accountant or attorney to discuss the possibility of a simultaneous three party like-kind exchange or even a deferred like-kind exchange. The appeal of those exchanges is that you could defer payment of federal and state income taxes on the sale. Of course I have no idea what your proposed sales price is, or your cost basis for the farm, but without a like-kind exchange if there would be a significant taxable gain on the sale you could end up paying quite a bit in taxes, even with the low 15% capital gains tax rate.
The like kind exchange is what I intend on doing. The fellow has agreed to pay 5% per year until I find another place. I am still going to meet with a good attorney experienced in handling this type of transaction before I go throught with it. Also, the "land flippers " are going wild over cattle land in my area . Buying it for 1300 per acre then selling for 1500 per acre. I think many people are moving money into land and causing the price to increase much faster than interest on money in the bank , or in the stock market. Also, I think people are discovering that the cowboy way of live is much better than livin in the city. I hope they dont ruin it . A couple recently built a house next to one of the places I have rented they asked could I feed the cows somewhere other than next to there house because they said the cows smell bad. Did they not notice they were moving next to a farm? :mad:
 
"The like kind exchange is what I intend on doing. The fellow has agreed to pay 5% per year until I find another place."

I'm not exactly sure what you and the potential buyer are contemplating regarding that 5% item, and I'm not trying to stick my nose in your business, but I am glad that you will seek out an attorney experienced in LKE transactions before entering into any binding agreement with the buyer. For the following comments I have assumed that you will be using some sort of deferred exchange arrangement. Make sure you use a qualified escrow agent or a qualified intermediary. The tax law requirements for a LKE are pretty explicit, and they must be strictly met, or you risk having the entire transaction becoming immediately taxable. Also, keep in mind that you have a fairly short time fuse for acquiring the replacement property -- within 45 days of the date of your sale you need to specifically identify a limited number of replacement properties to your agent or intermediary and generally you've got to get the qualified replacement property bought within 6 months of your date of sale.
 
Thanks Arnold. I am thinking of having the sale delayed until I find the place I want and then accept payment but I am going to meet with an attorney monday and explain what I would like to do and ask what he thinks is the best way to do it.
I have no binding agreement with anyone so far. I am always careful to watch how I have worded my talks when dealing with this guy as a potential buyer.
 
This reminds me of an old Indian saying,

We do not own the land, we are only borrowing it from our childrens children.
 
looks to me as the gov actually owns the land & you buy the right to rent it for so much a year by paying taxes. don't pay & they will take it back in a hurry
 
jerry27150":3r2kmpe2 said:
looks to me as the gov actually owns the land & you buy the right to rent it for so much a year by paying taxes. don't pay & they will take it back in a hurry

dang if that aint the truth
 

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