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| Would your banker have also then listed the capital gains tax on the unrealized capital gains between 16k and 8k as a long term liability? Most lenders in Iowa got away from increasing land on balance sheets post farm crisis (with some use case exceptions, but the tax liability should be stated then). Some lenders (including me) still do it when a good customer specifically asks to increase value on paper, especially if the customer is a good customer and it seems important to them. It means little to the bank as we of course all know what land is worth... the bank doesnt need it on a balance sheet for any practical reason, generally speaking. In fact for practical reasons, keeping at cost is more useful to the lender (unless doing a major debt restructure for example).
I am surprised the lender brought it up and not the other way around. | |
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Agriculture operating credit lines
