nc ks | reformedbanker - 12/14/2025 07:52
Most lenders keep land at cost basis. I was surprised when you said your lender asked you if you wanted to increase on paper. Sorry, I probably created confusion in my post. Lenders in Iowa generally do not increase land values on balance sheets without a purpose. If they do, the offsetting tax implications should be stated as a liability. I guess this is getting in the weeds on banking... if doing this, a dual column financial statement is actually best... but that is a lot of extra work for bank staff that is overkill for 95% of borrowers.
Bottom line is the tax liability is only a concern if you are ever going to sell the land, and that isn't likely or even possibility it most cases. |
Agriculture operating credit lines