FREE Guide to 1031 Tax Deferred Exchange of Farmland
Many people ask us about the tax saving techniques know as a “tax free exchange”or “1031 exchange”, or “like kind exchange.”
When selling farmland real estate in Indiana, this is an excellent way to save on capital gains tax, if you qualify. The “1031” comes from the Internal Revenue Code, Section 1031. It allows a person to defer paying taxes on the gain that may occur when selling real estate, or in our case farms in Indiana.
What questions do you have on 1031 Exchange? This book helps!
For Example: If you sell a farm, for example, for a million dollars and your cost/basis is only $100,000, then you would owe our Uncle Sam taxes on your gain of $900,000. BUT, with proper planning, the establishment of intent to exchange and the advise from your land broker, tax advisor and in some cases an attorney, you can exchange the farm or land by finding another property to buy with that gain. As such, you can “defer” paying the gain tax until you sell the other property.
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