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i gotta vent a little

yes,
i hope that between my mom and my aunt (and me if needed) we can get a deal worked out with him, this property was bought by my great grandpa year and years ago so i dont see the family really letting it get away?? but i will do everything in my power to make sure it at least stays in the family! my kids already love going there and just enjoying nature and my son is 4 and looking fwd to hunting it!
 
You may not be able to afford the tax bill if it worth more than $1,000,000. The death tax takes farms away from families all the time.
 
Tim Hull said:
You may not be able to afford the tax bill if it worth more than $1,000,000. The death tax takes farms away from families all the time.
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What do you mean when you say "you" may not be able to afford the tax bill? First of all no taxes on the buyer, and are you saying this farm is worth over a million? I thought it 160 acres?

If it is a family transaction, you could easily price it below the threshold for estate taxes...unless I am missing something??
 
Hardwood11 said:
What do you mean when you say "you" may not be able to afford the tax bill? First of all no taxes on the buyer, and are you saying this farm is worth over a million? I thought it 160 acres?

If it is a family transaction, you could easily price it below the threshold for estate taxes...unless I am missing something??
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Be very carefull by doing this! If your Grandpa would ever need to go on Title 19 in his later years they will look back on every transaction for like 7 years and will either have to pay it back at what they term as a "fair" price or simply will get denied.
 
westernsix said:
Be very carefull by doing this! If your Grandpa would ever need to go on Title 19 in his later years they will look back on every transaction for like 7 years and will either have to pay it back at what they term as a "fair" price or simply will get denied.
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I think you are missing the point here, estate tax exemptions in 2012 are over $5 million. In 2013 they are subject to change lower to 1 million or possibly less.

However, if you take 160 acres x $4000 an acre that is $640,000. That sounds like more than a fair price when the average sale of timber in that county was noted in Skips post (considerably less).

Find the average sale of timber in the county and then get the CSR of the crop ground and find that average sale, and price it accordingly.

Highly doubt you are looking at a million dollars for 160 acres, therefore no estate tax issues and no (7 year) look back issues
 
Just bring up to Grandpa the capital taxes !!!!! Would be cheeper to sell it to you at a reduced cost keeping it in the family. Also bring up the realestate comission. Oh I'm sure he would be a good grans dad and sell it on a contract for a grandson.
 
he is already 81 and wants to sell all his ground(this includes some prime botom ground) i dont think he will be short on money, allready been offered 8k/acre for the bottom, i could care less if he sells the botom! just need to get him to leave the 160 timber alone!
 
I wish I lived somewhere prices were around 2500 per acre. Unfortunately my job keeps me near Omaha. Anyway I think Teenage is pretty close in his numbers. Between Honey Creek and Glenwood (The area I assume TH is from) the prices are outrageous. If you had 165 good acres with only half tillable around here you are looking at nearly $1,000,000. The closer you get to Des Moines/Omaha the prices just go through the roof. Heck there is an 80 acre plot with small pond on it that recently went for 400 K....with ABSOLUTELY ZERO tillable. All timber and small pond. These rich people from Omaha are throwing around insane amounts of money for these parcels. The farmers are now expecting this and pricing stuff way out of the market for the average guy. I mean look at this:

http://www.heartlandproperties.com/details.asp?mls=8002464

That's only 80 acres. Maybe 40 tillable. This is what TH is talking about.

Bottom line is that land does go for these prices around where Teenage Hunter is from.....you can't really dog him for not knowing what the prices are everywhere else.
 
Holy crap I recognize that piece of property and know one of the owners! I think I may be spending waaay too much time looking at maps in the area if I can look at a pic and know it right away..!

And yes prices around here are insane. My 2 huntin buddies and I have been thinking of purchasing 30-40 acres near this area, just waiting on the right piece for the right price.
 
81 not a time to sell

tph said:
he is already 81 and wants to sell all his ground(this includes some prime botom ground) i dont think he will be short on money, allready been offered 8k/acre for the bottom, i could care less if he sells the botom! just need to get him to leave the 160 timber alone!
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If he is 81 he should keep the land, the capital gains tax will diminish any benefit he receives by selling after age 75. Put it in a trust for the family and allow him to continue to get income, if you have bottom ground, the cash rent has to be high!
 
he has talked about just cash renting it out also.. to me that would be a great ida! but im not an expert on how all that inheritance crap works?? but i do know how capital gain tax works, my wife had iheritated 40 acres of just farmable ground and we sold it last year, cost us about 30k just in capital gain tax!
 
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Ground with developmental potential close to big city will bring ridiculously higher prices. For example, if I wanted to get 10 mins from Urbandale but in the country, half timber & half tillable will be $10k/acre give or take a bit. The same ground 1 hour in the "cheaper" areas of the state would bring me around the 2000-2500 mark.

So sure- if this is by big city & big money & could be a subdivision, ok, different story.

160 acres in a "rural" location that is no where near being developed in any reasonable future that is majority timber/brush with maybe a 1/3rd rougher tillable - (at least that's what I'm hearing you say I think????) - should be $2500-ish. Yes, if your Grandpa has income, etc- his tax rate on the sale of this farm to an outside party will be AROUND 24% - 15% Federal Cap gains & around 9% state tax. Lots of things you could work out to help him by selling/keeping in family. And no, as of right now, the "death tax" would not come into effect if he passed & left this to you - as of right now. He could leave this to you tax free OR he could sell to outside party & give 25% right off the top to Obama, etc. More reason to keep in family. And to others, please- if you think 4-7k for ground is "reasonable" - I will get you a deal you can't refuse on my place :) More tillable than timber too!!!
 
i agree with the $2500ish, but who knows these days?? it is 1/1/2 hrs from omaha, 2/1/2 from desmoines, & a short hr. from sioux city. i dont think the city factor would weigh in, just worried about a couple big time farmers. i am just praying that he at least gives us the chance at it and doesnt sell it privately without us knowing untill its to late!
 
He is your grandpa...just got to talk to him and relay some of the great information from this thread. The 25% off the top straight to Obama is probably all you will have to say! ;)
 
Lots of good advice here. One thing to think about is, if he does decide to cash rent it to farm, be sure the contract is for "farming purposes only". Lots of misconceptions in Iowa that whoever rents the land has the rights to hunting. That is not the case, unless the landowner and farmer have hunting rights included in the contract.
 
that is a very good pint dedgeez, my dad had already thought about that because of a situation a few years back. thanks
 
ok, as of right now he is leaning on just cash renting it out to my uncle. so that is a little better, we will see what happens and i will keep you posted, thanks for all the support on here!
 
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