Deferring Taxes. Helping Clients.
What is the best way to reduce or defer capital gains taxes on the sale of farmland or other real estate investments? Many of our most satisfied clients ask this same question. Depending on your financial circumstances, there are a variety of strategies that can be implemented prior to closing that will help reduce the tax burden. Since 1977 we have helped landowners, farm families and investors plan and sell farmland & wooded property in Indiana utilizing these valuable techniques.
Consider the Tax Consequences
To completely defer a taxable capital gain it is important to consider you plan after the sale. Will I still need an income stream after I sell the farm? Or do I simply want to move my money into another investment property? These questions lead us down the road to a successful sale and secure transition of your wealth.
Future Income Streams
Will the net dollars from the sale of your farm be adequate for your situation? Do you need to plan for a continued income stream after the farm is sold? Planning for Charitable Remainder Trusts, Unitrusts or specific Annuity Trusts could be right for you. Have a conversation with an experienced land broker who understands how important these steps are.
Charitable Remainder Trusts
A Charitable Remainder Trust or CRT is an irrevocable trust that can generate an income stream for you & your beneficiaries, with the remainder of the donated assets going to your favorite charity or charities. This charitable giving strategy can significantly reduce your tax liability and generate steady income stream for your living expenses.
1031 Tax Deferred Exchange
Not all real esate qualifies for a 1031 exchange or swap, but one factor remains clear, the exchange of property must be held in business, in a trade or for investment. There are many other rules that may apply and proper planning a must. We specialize in helping with acquisition and exchanging farmland for investors and farm operators.
TOD (Transferred on Death)
Due to changes in the Indiana law, virtually any asset may be TOD—real estate, farmland, machinery, motor vehicles and more. A TOD is a vehicle that many people choose as a means to avoid probate. Keep in mind that TOD assets are taxed at their market value at death of whomever set the TOD in place for estate tax purposes—similar to a retained life estate.
Hiring an experienced land broker who understands the benefits of estate planning & wealth management it is possible to make a smooth transition when life circumstances call for it. Many of our most satisfied clients, from farm families to land real estate investors and heirs to the family farm have faced these same challenges. Our job as your advisor and land broker is to ensure that all of your most important needs and goals are taken into consideration as we go down the road of selling your farmland.