bleedred - 12/4/2010 14:39 Just had some mid seventy CSR dirt sell for 8k an ac to someone who needed to defer capital gains taxes. Had three good neighbors who all could have benefitted greating by owning this property... one of them even hung in there till the bitter end too. This is substaintially higher then anything else in this area has sold for. Appearently, they sold their land for too cheap - bet the previous owners are kicking themselves? Or the sales were not very recent. That's the nice thing about auctions - the land value is established at that very moment in time. Makes me mad that the owners didn't just give those neighbors a chance to bid on it and keep the outside money away. They would have gotten a good price, not that high, but a good price and the land would have gone to a good neighbor. Sorry if this sounds like ranting... not very happy atm. You make no sense . . . the owner of property is supposed to "give" equity/assets away? Because the owner has "good" neighbors? Last time I went to any auctions, prices were established for the product at that moment - no one offered to reduce the bid price or give a 'rebate" cause the bidder was a nice guy or good neighbor . . . bleedred - 12/4/2010 No one knows them... thats the whole point. People come in and over pay becuase their 1031 deadline is coming up, thus inflating values and taking ownership of land away from local farmers. That statement makes no sense . . . taking ownership away from local farmers? The land owner chose the sale method, the local's had the same opportunity to buy the land as the outsider - if it's local, surely it must be worth 15% more to the locals, then buying land outside the local area? The inflating of land has little to do with 1031's. Pat has pointed out very good info to the mechanic's of 1031's, their percived inflating effect and how they work. bleedred - 12/4/2010 The problem is with people continueing to essentially overpay up to 15% to avoid the Cap Gains tax it simply unaturally inflates the value of land. The producers who were the second bidders are very good producers, very well respected in the community, and farmed on three sides of this farm. The farm was worth more to them becuase of its location. Just because you are a very good producer and well respected, doesn't mean you get special consideration . . . If they neighbored the farm, it should have been worth 15% (or more) more to them, due to proximity to their location? They must be good farmers, as they knew what their limit was on the bidding . . . . It makes no sense to dislike someone because they bought something someone else thought they should get special considertion - and pay less. It's hard to say the value of land is inflated due to the 1031 - land is inflating, as Pat and others have pointed out, because it's a save haven for dollars . . . | 
Someone explain to me how a 1031 exchange is good for farmers...
