A knowledgeable agricultural realtor can save you thousands of dollars. Sometimes, often as a result of urban sprawl, farmers want to sell acreage with a higher dollar per acre value in favor of purchasing more but equally good farming land at a lower per acre price. Urban crowding and neighbor complaint issues about trucks and odors may offer an opportunity to expand and improve agricultural productivity.

A program called the 1031 Exchange has existed for many years. The purpose of this tax option is to allow farmers to exchange lands by not having to pay capital gains if they purchase new land within a certain period of time for an equal amount of money. Typically, this exchange provides the farmer with more new acreage than he had before.

In 2018, adjustments were made to the program. Like most issues involving government regulation, complicated details muddy rather than clarify how to gain the best tax advantage. A good realtor is the best source for detailed, property specific information. If considering this kind of an exchange, seek the advice of a realtor specializing in agriculture today.

For 1031 IRS Exchanges in AR and OK, we recommend RealtyMart-USA.com