Posted 12/5/2012 13:38 (#2734397 - in reply to #2734097) Subject: RE: Thoughts on all the talk/complaining about taxes/estate tax on here.
CENTRAL ILLINIOS
"You continue to accrue land and build assets over the next thirty years, using tax loopholes setup for the Ag industry"
I think you are assuming a farmer can pay for land with money before taxes. As far as i know there is no way to pay for land with pre-tax dollars. The interest is deductible but not the principal. So you have to pay income tax on any money used to pay down principal.
If you buy land (640 acres) for $1.792 M and sell it for $6.4M how much have you really made - you still only have enough money to buy 640 acres so you have just broke even. When you bought that first 160 back in the 80's you could have bought a new pickup for $6000. Try that today.
Thoughts on all the talk/complaining about taxes/estate tax on here.
