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TABLE OF CONTENTS:
1. One Homebuilder Sees Upcoming Land Bargains
2. Another Source of Free Land
3. Death and Taxes Together - Obama's Estate Tax
4. Conservation Easements and 1031 Exchanges
5. Recent Properties
According to its most recent earnings report Meritage Homes sees itself "... acquiring lots again at what we expect will be greatly reduced prices." Chief Executive Officer Steven Hilton told Reuters the company is seeking land deals in all of its markets, and it is seeing finished lots in good locations that cost between 20 and 35 cents on the dollar off their peak prices.
We have written over the years about small towns or communities that offer free land to folks who want to move there. One good site for property in Kansas is (no surpise) KansasFreeLand.com. The site lists the newest town to offer free land, Osborne, KS. You can get information on their free land offer at their website, DiscoverOsborne.com or by calling 866-346-2670. And just think, when you die the value will be too low for the government to tax!
Land can be one of the largest assets a person holds when they die. Unfortunately, the government taxes our assets at death. According to the IRS, Estate Tax (also known as "Death Tax,") is, "a tax on your right to transfer property at your death." This tax consists of the fair market value of all property you own at the date of your death. The items generally comprise the following:
1. Real Estate
2. Stocks and Bonds
3. Mortgages, Notes and Cash
4. Insurance on the Decedent's Life
5. Jointly Owned Property
6. Other Miscellaneous Property
7. Transfers During Decedent's Life
8. Powers of Appointment
9. Annuities
Bush had been working to permanently eliminate estate tax, and in 2010, the death tax rate is supposed to drop to zero for one year. However, when the reform expires in 2011, the tax rate will return to the original 55%. It seems unlikely that the 55% rate will actually be implemented, but you never know.
The President's website, www.BarackObama.com provides the current president's "comprehensive tax plan" which includes a brief section on Estate Tax. His current plan says, "The estate tax would be effectively repealed for 99.7 percent of estates. For the remaining 0.3% of estates over $7 million per couple, Obama will retain a rate of 45%. This policy would cut the number of estates covered by the tax by 84 percent relative to 2000."
Last month, we explained the process of a 1031 Exchange in our article on the downfall of former 1031 qualified intermediary, LandAmerica. Now, with the guidance of attorney Adam Skarsgard, co-owner of Asset Exchange Company, we want to inform you about conservation easements and how they can connect to 1031 exchanges. 1031 exchanges involve investors having a qualified intermediary hold the funds they received from recently sold property until they can reinvest that money in new property within 180 days, in order to defer capital gains taxes.
Skarsgard recently published an article titled, "Doing Well by Doing Good: Conservation Easements and 1031 Exchanges." In this article, he explained the potential to preserve the environment, while doing well for yourself financially. This process comes in the form of combining Conservation Easements and 1031 exchanges. The Nature Conservancy defines a conservation easement as, "a voluntary, legally binding agreement that limits certain types of uses or prevents development from taking place on a piece of property now and in the future, while protecting the property's ecological or open-space values."
So how are conservation easements in any way related to 1031 exchanges? Skarsgard explains that while it seems as though the two have opposing ideals (1031 exchanges benefit the investor, and conservation easements benefit the land) they can actually be put together in a way that benefits both the investor and the land simultaneously. Says Skarsgard, "Real property law in every state considers [conservation] easements to be a part of the real property. By selling an easement, an investor is selling real property, even if the underlying land the easement pertains to is still owned by the investor." Therefore, even though the landowner still owns the property, they can still qualify for a tax-deferred 1031 exchange. In doing so, they are preserving land, and preserving their bank accounts too. See a qualified tax professsional to determine if the sale of a conservation easement on your property qualifies for a 1031 exchange.
| | by LandAndFarm.com Staff
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Sample of Recent Properties
Kary Land Auction 640 Acres (row crops) 640 acres.
Java, South Dakota
27.45 Pond, Fields, Hardwoods (forest - natural) 27 acres.
Polkton, North Carolina
49 Ac Hardwoods Creek Roads (forest - natural) 49 acres.
Lancaster, South Carolina
5.787 Edisto River Tract (waterfront) 6 acres.
Branchville, South Carolina
Level Run (residential land) 1 acre.
Tatum, South Carolina
Flint Hills Hunting (recreational property) 172 acres.
Cedar Vale, Kansas
Hunting Property (hunting property) 89 acres.
McKenzie, Tennessee
Academy Road Farm 41 Acres (residential land) 41 acres.
Bennettsville, South Carolina
Little Pee Dee River 39.8 Acres (recreational property) 40 acres.
Dillon, South Carolina
Pocosin Tract 407.64 Acres (forest - planted) 408 acres.
Dillon, South Carolina
21.25 Wooded Smith Co. Acres (hunting property) 21 acres.
Brush Creek, Tennessee
Produce Business And Property (commercial land) 60 acres.
California
Country Living (residential land) 2 acres.
Fall River, Kansas
360 Degree Hilltop View (undeveloped land) 14 acres.
Brush Creek, Tennessee
Log House Amish Built (pasture) 24 acres.
Huntingdon, Tennessee
4080 Acre Grain Rice Farm (row crops) 4,080 acres.
Tunica, Mississippi
137 Acres Farmland 2750ac (row crops) 137 acres.
Rinard, Illinois
Hunting And Recreational Land (hunting property) 68 acres.
Mt. Sterling, Kentucky
Sportsmans Paradise (residential land) 100 acres.
Gainesboro, Tennessee
Georgia Land Auction 94 Acres (undeveloped land) 94 acres.
Pelham, Georgia
40 Acres Priced 2750 Per Acre (recreational property) 40 acres.
Rinard, Illinois
102+ AC CLOSE TO I-40 RECREATIONAL TRACT (residential land) 102 acres.
BLOOMINGTON SPRINGS, Tennessee
Great Views And Good Hunting (hunting property) 71 acres.
Mountain Grove, Missouri
89 Acres Priced 2650 Per Acre (row crops) 89 acres.
Rinard, Illinois
40 Ac NE Nevada By Utah (undeveloped land) 40 acres.
Montello, Nevada
308 acres Hunting Land (recreational property) 308 acres.
Lebanon, Oklahoma
Almost Heaven Wva (residential land) 1 acre.
Wellsburg, West Virginia
Www.5land.com 5 Acres (residential land) 5 acres.
White Plains, Georgia
Pleasant Grove Farm 25.64 Ac. (residential land) 26 acres.
Chesterfield, South Carolina
Jasmine Terrace Farm 41 Ac. (residential land) 41 acres.
Bennettsville, South Carolina
13 Acre Farm - Loysville, PA (residential land) 13 acres.
Loysvile, Pennsylvania
Flint Hills Home (waterfront) 322 acres.
Douglass, Kansas
10 Acres Owner Financing (residential land) 10 acres.
White Plains, Georgia
5land.com 287 Per Month (pasture) 5 acres.
White Plains, Georgia
287 Acres Borders State Forest (hunting property) 287 acres.
Beattyville, Kentucky
Buck Springs (hunting property) 93 acres.
Heath, Ohio
Church And Parish House (commercial land) 3 acres.
Ronceverte, West Virginia
Tustumena Lake View Property (recreational property) 28 acres.
Kasilof, Alaska
Premium Farmland For Sale (pasture) 375 acres.
Millersburg, Pennsylvania
42.5 Ac Gorgeous Homesite (residential land) 43 acres.
Bronson, Florida
Sit Back Relax (residential land) 26 acres.
Palmersville, Tennessee
47 Acre Farm Ne Ky (permanent crops) 48 acres.
Tollesboro, Kentucky
Fenced Rolling Land (pasture) 12 acres.
Calhoun, Georgia
Secluded Investment Property (hunting property) 116 acres.
Lunenburg, Virginia
4.41 TOTALLY LEVEL LAND (residential land) 4 acres.
CELINA, Tennessee
Edisto River House W Acreage (hunting property) 70 acres.
Branchville, South Carolina
5 Ac T0 7 Ac Tracts Homer Ohio (residential land) 5 acres.
Utica, Ohio
Lake Greenwood 70ac Waterfront (waterfront) 70 acres.
Waterloo, South Carolina
Immaculate Home Easy Commute (residential land) 1 acre.
Ripley, West Virginia
Perfect Getaway (hunting property) 100 acres.
Lunenburg, Virginia
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