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Land rich and cash poor
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Kooiker
Posted 12/14/2025 22:56 (#11470544 - in reply to #11470538)
Subject: RE: Land rich and cash poor



Hick - 12/14/2025 22:40
Kooiker - 12/14/2025 17:50

Hick - 12/14/2025 12:28 If I buy $10,000 land today and get 3% back as rent but the land is worth $12,000 in 2 years what percent return did I get? This is what has happened the whole time I have been farming.


Approx 2.5% (subtract property taxes) unless you sold the land for $12k. 

The land appreciation isn’t realized until it is sold.    And that is a very very good thing.     You do not want to be taxed on land appreciation without selling it.  

Agree to disagree.




Unless you have the cash in your hand or the money in your bank account, asset appreciation means nothing.

When that land appreciation is sold and becomes real money, the IRS will want its share.

BTW, stock market gains are the same.    You don't have any gain or loss until the position is converted to cash.



Edited by Kooiker 12/14/2025 22:59
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