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SW Iowa | Principal payments on land are not tax deductable, and must be strung thru the tax loop. That is the way it has always been since I bought my first farm in 1977. The only deduction is the interest on the RE loan. Where did I say any different with IALTO?
Cash can be had from many sources to put into a farm, from a 1031 exchange to marrying a rich widow, wouldn't you agree? If it is strictly from savings, and you are in the 40% tax rate , then you have made $10,000 to save $6,000. Agreed there too///1
As far as your impending crash, we will have to see. One thing about a dollar today, it is worth more than a dollar tomorrow, and as long as that continues we will move along with this debt being serviced each year with cheaper and cheaper dollars, thusly, easier to service as time goes by. The biggest unknown is the cash prices of grain produced, as that is where all the dollars come from. | |
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Land Prices???
