Miles Marshall for Marshall Land Brokers & Auctioneers talks about Tax-Deferred Land Exchanges (commonly known as 1031 exchanges)
Tax-deferred land exchanges, these are commonly known as 1031 exchanges because they are under the Internal Revenue Service’s tax code 1031. These exchanges have become very popular over the years; currently we have two sales in escrow, at this time, where the buyers are doing a 1031 tax-deferred land exchange. For example, one of the situations the buyer has sold a commercial property and is exchanging into irrigated cropland. In the other sale we have in escrow currently the buyer has sold land in a different part of Nebraska that wants to trade it to something closer to home, here in Central Nebraska. Just a little over a week ago we closed a sale, a significant sale, a little over two million dollar transaction, where the buyer had sold land from out of state and traded it into some property here in Nebraska.
1031 exchanges are very common, currently we have a number of people who are contemplating of doing a 1031 tax-deferred land exchanged. For example, we have a party who owns some rental houses and would like to liquidate those and trade it into farmland here in Nebraska. And also other people who are doing similar transactions. The 1031 tax-deferred exchange has become a great tool for people that would like to sell a property that has a capital gain and trade it into other property without triggering a capital gain tax on it.
If you are thinking about doing a 1031 tax-deferred land exchange, we recommend that you contact your accountant or your attorney because there are limitations and restrictions on the timeframe.
If you are considering the sale of land, we do have buyers in different counties and different areas around Nebraska looking for properties at this time. Give us a call at our office in downtown Kearney (308-234-6266). You can talk to Luke Huddleston or Miles Marshall.
And never forget…”The Best Investment on Earth…Is Earth!”