Minimize the Federal Tax Impact of Selling Your Farm or Ranch

Sprawling horse ranches and farms are a fact of life throughout #Florida. With an enviable climate and space to roam, the Sunshine State rightfully attracts those who need the space and weather for year-round training.

But when a ranch owner is ready to sell and move on to greener pastures, the sale of all that expensive land can make April 15th a very stressful and expensive time. Of course, with appropriate planning, a savvy farm owner can avoid capital gains taxes on the sale of their property, giving them more money to reinvest into other endeavors.

How? With a well-planned and executed #1031 exchange.

Doing a 1031 exchange is not complicated or difficult. It simply requires the owner to follow some straightforward rules related to the sale of existing property and the acquisition of replacement property. Time deadlines and the “like-kind” requirement are two of the big ones, along with the requirement that both properties must be held for business or trade purposes.

However, as long as the requirements are met, then capital gains taxes will be deferred on the sale of the farm or ranch. It can be a lucrative way to protect the equity that you’ve worked so hard to acquire.

If a 1031 exchange is in your future, visit our website to learn more about these powerful tax deferral tools and our qualified intermediary and replacement property locator services.