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| A few years ago we sold a farm that we had owned a little over 20 years for 4x what we paid for it. This was a preserved farm so it wasn't sold for development, solar panels, or a data center, etc. We had done some work on the house and buildings but nothing major so the vast majority of the gain was from inflation. We used a 1031 exchange to buy a lessor quality farm with almost double the acreage and a small office building. These weren't my ideal properties but hopefully in the future we can flip them for something more desirable. At the time and even now there isn't much for sale and there are strict time limitations to make the exchange. It's not as easy as it seems which is why people will go out of their area and pay above market prices to avoid a big tax bill. Once you write the check to the government it's gone. | |
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1031 rules need to change