You worked hard. Now its time to enjoy the fruits of your labor. Defer the capital gains on your farmland sale.
We assist farmland owners in deferring their capital gains tax upon sale for up to 30 years. Using an IRS approved structure, we can lend up to 99% of the sale price of your farmland to you at time of sale, while you defer all capital gains taxes for up to 30 years. This is particularly attractive in states with high capital gains tax (in addition to Federal Capital Gains Taxes) and where farms have been owned for long periods of time.
In situations where the farmland is heavily incumbered, and the sale proceeds of the farmland will not cover the mortgage and capital gains tax, we can help. We will work with your bank and our partners to structure a transaction where you can defer all of your capital gains tax for up to 30 years, repay your mortgage, and have the right to the residual cash (sale price minus mortgage) instead of paying out of pocket for capital gains tax.
Whether the transaction is $1,000,000 or $100,000,000, and whether you are a farmer that owns his own land, non-operator farmland owner, or a farmland fund, we can help.
– Federal capital gains tax is 20% while California tacks on another 13.3%. One-third of your farmland sale proceeds can disappear without a capital gains tax deferral structure. Make that 33% work for you for the next 30 years.
– We can assist in the deferral of capital gains on farmland as well as sale of grain and livestock.