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East central Iowa | Lease the Equip. Use that to transfer some money to him. Lease can be almost any terms you both want. And be taken as ordinary income, no capital gains.
So you are renting ground until he dies then inherit? I think some of the ground needs to be yours early on. To protect your risk. Remember you can gift money to him, with limits. Seek legal and accountant advise before anything is signed.
Also look at young farmers programs, they can benefit him tax wise. Line of credit can be tied to crop.
I'm no expert at all just some quick thoughts.
Dave
Edit, I came up with some very creative ways to do this when my parents sold me the farm lock stock and barrel. Don't be afraid to think outside the box. Both parties need to be happy with program. We had a meetings with lawyer and tax accountant. (same room) They had not seen our exact plan but, after looking into it, they found no issues, and worked out very good for all. It was a 15 year plan. Financially it was tough at times but all good in the end.
Edited by woodchuck 9/26/2020 06:21
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Farm rental from father to son
