Farm Appraisals, 1031 Exchange, Consulting
Thinking of Buying New Property? We Can Help Maximize Your Sale
Interested in buying another property when you sell your farm or investment property? We can help! Not only do we know how to do an exchange, but we know the right qualified intermediaries to help you achieve your goals.
What is a 1031 Exchange you ask?
1031 Exchanges, or “Like Kind” tax deferred exchanges, are defined by Internal Revenue Code (IRC) section 1031. A 1031 Tax Deferred Exchange offers taxpayers great opportunities to build wealth and save taxes. By completing a 1031 Exchange, the Taxpayer (“Exchanger”) can sell their farmland investment or business-use assets, purchase a replacement property and defer the tax that would ordinarily be due upon the sale.
A 1031 Exchange allows sellers to defer Federal capital gains tax, state ordinary income tax, net investment income tax, and depreciation recapture on the sale of farmland or other investment property if certain criteria are met including:
- Buy replacement property for equal or greater than sold for and reinvest all proceeds
- Identify replacement property within 45 days of close of sale
- Purchase replacement property within 180 days of close of sale
- Must Sell and Buy property that is considered “like-kind” to each other
- Process must be handled by a Qualified Intermediary (QI)