1031 Blog

Farmland sold for more in '04

By Chris Anderson

BLOOMINGTON -- Nearly 25 years ago, Central Illinois farmland sold at $4,000 per acre for the first time. Farmland prices soared 25 percent, bolstered by strong world exports and steadily increasing grain prices.

It's happened again, but for different reasons. Central Illinois farmland values increased as much as 16 percent last year and 20 percent statewide.

Those are findings from the latest farmland survey by the Illinois Society of Professional Farm Managers and Rural Appraisers.

The group asks members every year to gauge trends in farmland values. The survey covered farmland sales in 2004.

Not much has changed so far this year. Wapella auctioneer Jay Haycraft conducted a multiple estate sale of Livingston County farmland in February. Sale prices ranged from $2,550 per acre for 234 acres to. . . full story here.

New How-to-Do Book on Real Estate 1031 Exchanges

Ed Horan's book on "How-to-Do a Like Kind Exchange of Real Estate - Using a Qualified Intermediary" (ISBN: 1-41204614-9) has been published by Trafford Publishing.

Haymarket, VA (PRWEB) March 29, 2005 -- With the unprecedented appreciation of real estate investment and business property, taxpayers are looking in greater numbers for a way to defer paying large capital gain taxes.

Ed Horan, a nationally recognized qualified intermediary for the exchange of like kind investment and business property, has just published his book “How to Do a Like Kind Exchange of Real Estate – Using a. . . full release here.

Real Estate Investors Should Know What They Are Getting Into

By Jennifer Plotnick

RISMEDIA, March 28 – (KRT) – Rudy Flores still works 40 hours a week, but only because he wants to. His finances are set with investments.

Flores jumped into buying real estate in Bakersfield, Calif., in 1998. Now he has about $2 million in assets and $1 million in equity. His three sons are set for college, even though they're only 14, 6 and 4 years old.

"My cash flow pays for my Seven Oaks home," said Flores, a high school graduate. "It's getting better all the time."

Flores continues to see success through investing. But he started investing when property was cheaper in. . . full story here.

Are farmers getting fair deal?

By Natalie J. Ostgaard, City Editor

Are farmers getting a fair deal? The consensus of the dozen or so people attending a listening session sponsored by the Center for Rural Affairs and Minnesota Agri-Women was that they are most definitely not.

The farm policy discussion was held Monday evening at the Golden Link Senior Center in Crookston. Only a handful of people attended another session Tuesday night in Thief River Falls, where they talked mostly about value-added businesses.

Kim Leval, senior policy analyst with the CRA, flew in from her home in Oregon to moderate the discussions. The CRA is a non profit organization based out of Nebraska that works to promote. . . full story here.

Beware rising rates ahead - Part II

By William F. Hague

Continuing last week's train of thought, it's important to continue to educate investors about the ramifications of the pending economic cycle, i.e, rising interest rates.

Now, I don't wish to belabor the point here, but the signs are all around us. On last Wednesday, March 16, Wall Street was stunned by the news: "General Motors falls to a 13 year low." Are you kidding me?

Let's analyze why this is such bad news. Interest rates have been at all time lows, GM has been offering vehicles with 0 percent interest financing, money is cheap everywhere and to everyone, the stock market as a whole is still nearly 10 percent below its highs of five years ago, and. . . full story here.

Windsor space sells for big price

By KIRSTEN ORSINI-MEINHARD

Real estate investor Dale Boehner has sold a shopping center on 3.5 acres in Windsor in one of the largest shopping-center deals in the past year.

Boehner and several other investors sold the development, which includes a 23,100-square-foot shopping center, to Westminster-based Sidford Capital LLC for $4.75 million, said Ryan Schaefer, principal of Loveland-based Chrisland Inc., which represented Boehner in the deal.

The shopping center has 13 tenants, including Washington Mutual, Papa John's Pizza, Subway and Mailboxes Etc. They're leasing their space for an average of. . . full release here.

Land values turn grain belt into money belt

By Greg Burns

It's the hottest market in a generation, and farm broker Ray Brownfield is making the most of it.

The price of Midwest agricultural land has skyrocketed over the past few years, as an irresistible tax incentive, big crops and generous federal subsidies have turned the grain belt into a money belt.

In rural LaSalle County, the value of prime ground has more than doubled since 2000. A 900-acre spread worth less than $3,000 an acre five years ago recently went for a whopping $7,300. "These are long-term holders, buying for their children and grandchildren," said Brownfield, who handled the sale. "They're going to be there for many years to come."

No one has seen this kind of money plowed into the heartland since the debt-fueled buying binge of the early 1980s. While that boom turned into a devastating bust when the loans came due, much of the land these days is. . . full story here.

What is a 1031 Exchange?

By W. Troy Swezey

In the summer of 1990, the I.R.S. finally came out with the long awaited rules on Deferred Exchanges. Section 1.1031 of the Internal Revenue Code laid out in detail the procedure for turning a sale and purchase type transaction into an exchange.

These new rules allowed owners of certain types of like kind Real and Personal property to sell their property and buy other like kind property without paying the Capital Gains Tax.

The like kind provision for Real property is quite broad, and includes Land, Rental, and Business property. Any of which, can be exchanged for the other. The like kind provision for Personal property is more restrictive.

This type of property must be in productive use in a business (depreciable property), and can only be exchanged for the same type of property.

As an example a business aircraft for a business aircraft. . . full story here.

Tobacco buyout carries tax implications

By Daniel Osborne

Almost inevitably when farmers receive a payment, there are tax implications. Such is the case with the tobacco buyout. The tax treatments and considerations will vary depending on whether the payments are received as a quota holder or producer.
 
Payments to quota holders will be taxed as long-term capital gains — 5 percent or 15 percent for years 2005-2008 and 10 percent or 20 percent after 2008 — if held more than one year.

Payments will be taxed as short-term capital gains at the ordinary tax rate if. . .  full release here.

1031 Tenant in Common Industry Anticipates Record Growth in 2005

On February 7, 2005, Triple Net Properties, LLC, announced the sale of Morneo Corporate Center on behalf of Tenant In Common investors.

The 226,053 square-foot, mixed use business park located in the Moreno Valley, California was sold for approximately $17.3 million to Basslamp Ventura, LLC. Triple Net Properties investors originally purchased Moreno Corporate Center in June 2000 for $11.6 million.

This transaction highlights the evolution of the 1031 Tenant-in-Common (TIC) Industry and its appeal for investors seeking the benefits of 1031 exchange, and. . . full release here.