March 28, 2025 • 45 mins
In this episode of The American Land Seller Podcast, we sit down with Troy Stafford, CPA and Land Specialist with High Point Land Company, to unpack the financial side of land transactions—specifically 1031 exchanges, capital gains, and common tax pitfalls. With a background that blends boots-on-the-ground ag experience and high-level financial leadership, Troy brings clarity to one of the most misunderstood areas of land sales.
We break down the basics of how 1031 exchanges work, what types of land qualify, timing requirements, and when this strategy might not be the right fit. Plus, we dive into common misunderstandings in row crop sales, and what both agents and landowners need to consider before listing or buying.
Whether you're a landowner, investor, or real estate professional, this episode offers practical, real-world guidance to help you make smarter, more informed decisions when it comes to rural property and tax strategy.
📞 Contact Troy Stafford
High Point Land Company
📧 Email: troy@highpointlandcompany.com
📞 Phone: (507) 259-3047
🌐 Website: https://www.highpointlandcompany.com
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Today on the American Land Seller, we have a
must-listen-to conversation forland professionals, rural
property owners and anyonenavigating the world of land
sales.
We're diving into somethingthat comes up often but isn't
often well understood the 1031exchanges and tax smart
strategies in land deals,whether you're selling inherited
(00:22):
ground, looking to defercapital gains or trying to help
a client reinvest into more landthis episode is packed with
insight you can use right now.
I'm joined by Troy Stafford fromHigh Point Land Company, a guy
who brings both ag roots andfinancial expertise to the table
.
Troy grew up working on dairyfarms in Dodge County, minnesota
(00:43):
, and has spent his entire lifein the community.
After seven years in publicaccounting, he went on to serve
as CFO and controller roles inprivate industry, including over
a decade with a producer-ownedfarm cooperative.
He holds an MBA and active CPAlicense, as well as a real
estate license and a deepunderstanding of how tax
(01:04):
strategy plays out in real worldland transactions.
On top of that, Troy gives backas a volunteer firefighter,
first responder and EDAcommissioner for both Dodge
County and the city ofManorville.
In this episode, we break downhow 1031 exchanges actually work
, what qualifies, what doesn'tand the common traps that can
(01:25):
cost landowners big money.
Oh, and we also talked throughsome common misunderstandings in
row crop sales that can trip upeven the experienced sellers
and agents.
Whether you're a landowner,investor or agent trying to
better serve your clients,you'll walk away from this
episode with a stronger handleon the financial side of land.
This episode is packed withinsight and real-life experience
(01:47):
.
You won't want to miss it.
Speaker 3 (01:51):
Welcome to the American Land Seller Podcast
with your host, coby Rickardson.
Coby is an accredited landconsultant and multi-state land
broker with High Point LandCompany.
Join us each week as we exploreall things land.
We bring you fresh insights andexpert guests on sales,
marketing, regulations,economics and so much more.
(02:11):
Visit wwwamericanlandsellercomand find us on one of your
favorite podcast platforms.
Speaker 4 (02:19):
Okay, Kobe and our special guests, let's get
started.
Speaker 1 (02:26):
Toby and our special guests.
Let's get started.
Welcome back to the AmericanLand Seller Podcast.
Exciting day today we have TroyStafford from High Point Land
Company.
Troy, how are you today, doingwonderful, and yourself, oh,
doing great man.
How's things in Minnesota?
Speaker 2 (02:42):
It's very tepid here.
People are getting excited.
It's getting nice out.
People are getting anxious toget out and work some ground as
soon as this frost leaves.
Speaker 1 (02:51):
That is awesome.
That is very good.
You seem to be killing itlately, Troy Like just got all
kinds of stuff for sale andgetting stuff under contract and
must be a great part of thecountry to be working in right
now.
Speaker 2 (03:04):
Yeah, it's really exciting times up here.
I've seen a number of exchangebuyers come my way by virtue of
my background and my CPA license.
People trust that, so it worksout well and sold a number of
properties and have quite aplethora of listings right now
for the take-in.
Speaker 1 (03:21):
Yeah, I was just going through and looking at
that that is amazing.
So congratulations to you onall your success.
So I wanted to talk just startout by you and I both deal quite
a bit in row crop salesfarmland.
I wanted to talk just a littlebit about.
You kind of have some thoughtson some misconceptions there are
(03:45):
in row crop and marketing andstuff like that, you know if you
can just get into a little bitof that for me, I'd really
appreciate it.
Speaker 2 (03:54):
Sure, I guess the biggest misconception we run
across, especially with estatesor absentee landowners, is that
well, I can't sell my row cropland because it's under contract
and so-and-so is going to runit for the upcoming year and
until that lease is done Ireally can't sell the land.
My hands are tied, and that'sprobably the biggest misnomer or
(04:14):
misconception we run across.
At least in the state ofMinnesota it's almost always.
The lease is transferred andthe new owner the land assumes
the rights and responsibilitiesof said lease.
Those payments are trued up atclosing and really regardless of
how the payment structure isfor the lease payments, that can
(04:36):
all be shored up in a simplepurchase agreement and
subsequent closing.
So that's really amisconception that most people
believe in.
But in reality it's really nota hurdle or obstacle whatsoever
with selling row crop land.
Speaker 1 (04:50):
Right and I think that's kind of true in most of
the states that I am in too youcan transfer that lease to the
new buyer without any realproblems that I know of.
So that's a great point thatyou make there.
Speaker 2 (05:04):
Yeah, and then, generally speaking, the rents
are prorated based on days ofownership.
So I mean that can all benegotiated well as well.
If the sellers want to retainthe rents, that's certainly fine
too, as long as it slows upfront.
Speaker 1 (05:22):
Yeah, I've seen like you pay all the taxes, you get
all the rent type of stuff too.
So, yeah, there's tons ofdifferent ways to do it, but
that's a great point that Ithink a lot of people even if
you're in a multi-year lease, ifsomebody is willing to take
that on.
And I've even seen farmers thathave bought, you know, two
three-year leases just so theycan have the land at the end of
it and take it on the rent.
Speaker 2 (05:40):
So excellent point, so no, so excellent point.
Speaker 1 (05:42):
So you know when you're, when you're dealing with
row crop sales and Nebraska, Ithink we're probably more
irrigated here.
That's where the higher dollarstuff is.
I'm not sure Like in.
Speaker 2 (05:56):
Minnesota.
Speaker 1 (05:56):
I think you guys are still in where it's a lot of dry
land.
What?
What kind of properties are youguys just basically seeing
change hands most of the time?
What kind of properties?
Speaker 2 (06:05):
are you guys just basically seeing change hands
most of the time Down in mytrade territories, which are
basically southeastern Minnesota, it's mostly row crop land.
There's not a lot of mixed-useland.
We're in some very fertilesoils so they don't have any
wasteland per se.
I mean there is some right away.
There's some waterways toprevent erosion but for the most
part everything I sell isprobably 95% tillable.
(06:28):
So it's pretty consistent andit's very flat, black and square
in this area.
So very high CPIs, consistentlyin the mid-90s.
Speaker 1 (06:37):
Nice.
Well, one of the things I thinkis kind of interesting.
I think people are going tofind interesting is that you are
a licensed CPA.
Speaker 2 (06:47):
Correct, that is correct.
I have been since 1992.
Speaker 1 (06:50):
How does that help you with your land sales
business?
Because you're not doing bothright.
You're just a full-time landbroker.
You're not doing CPA stuffstill.
Speaker 2 (07:03):
Part of my land transactions.
There's an inherent knowledgebase that I can add value to a
given transaction.
But I'm not actively in publicaccounting.
But I do keep the licenseactive so I can guide people as
it relates to tax planning andor tax consequences of selling
and best ways to structure salesso they mitigate the amount of
(07:26):
tax liability they're exposed to.
Speaker 1 (07:28):
Yeah.
So kind of like a lot of us,you've got a lot of in your
history.
You've got a ton of experiencethat helps you with helps your
clients, like from the timeworking on the farm all the way
through working with co-ops andfarmers and stuff like tie that
(07:50):
into how that makes you one ofthe top land guys in Minnesota
right now.
Speaker 2 (07:55):
Well, I have a sincere appreciation for all
that growers and producers gothrough, all through college and
high school.
I did achieve that appreciationby working on two respective
dairy farms and you know it's alot of work that goes into
maintaining cattle, maintainingcrops and the like.
So and then, like I said, withmy tenure in the co-op world, I
(08:20):
was CFO controller, so I had aneven greater appreciation for
what they endure and you know mygoal at the end of the day is
to help them, you know, addvalue in the transaction and
bring the most to the partiesthat I represent.
So, being a CPA, there's aninherent level of trust.
Just like you know, I alwayssay you trust three people your
mom, your attorney and youraccountant.
(08:42):
So you know that does give me acompetitive advantage because I
do know quite a bit more aboutexchanges and help the number of
exchange buyers and or sellersmake sure they're compliant with
the stringent requirements.
Speaker 1 (08:57):
Well, and I think you've been a huge asset to
other agents at High Point toowith being able to help them
navigate through, answerquestions for their client,
maybe even get them in touchwith a good CPA in the area, or
at least let us know what we'relooking for when we're looking
for one.
So that's got to be a hugeadvantage as well, wouldn't you
say?
Speaker 2 (09:17):
Yeah, and that's what's great about being with
High Point.
We have so many agents that areso diverse on their knowledge
base we can pretty much lean oneach other for any one
particular topic and we haveexperts you know, multiple
experts in the same topic so wecan bounce ideas off and we have
a conference call every weekjust to run scenarios by various
agents and that adds value toall of our clients as a whole.
Speaker 1 (09:39):
Yeah, no, that's absolutely true.
That's been my experience sincejoining High.
Point has been just like.
There's just a ton of talentboth on the field and on the
bench any given day, so a lot todraw on as far as being an
agent.
Even in Nebraska, I draw on youguys that are in other parts of
(10:00):
the country for lots ofknowledge.
So let's talk just a little bitabout 1031 exchanges, if you
don't mind.
When does it make sense forsomeone to start thinking about
reaching out to professionals ifthey're going to want to maybe
do a like-kind exchange, andthen what kind of does that
(10:21):
process look like?
Speaker 2 (10:22):
And then what kind of does that process look like?
Well, if you're contemplatingan exchange, the sooner you
initiate a search and you alsostart reaching out to
professionals whether it be taxaccountants, attorneys,
experienced land agents thathave 1031 exchange experience
the better off you're going tobe, Because ideally, you want to
(10:42):
start searching before you listyour property and or get it
under contract, because there isa very short time frame from
the time you close on theproperty you're relinquishing to
the target property and that'simperative that you stay within
those strict requirements or youmay not be able to exchange
your property to exchange yourproperty.
Speaker 1 (11:08):
Yeah, and I think that's the big thing is like
following the rules.
It's extremely complex.
What are your thoughts on likeyour standard title company
versus hiring like a 1031exchange professionals?
You know, does it just kind offind out who knows what they're
doing or, from experience, thatyou know who to guide those guys
to?
Speaker 2 (11:27):
Well, the unique part about a deferred tax exchange
is you do have to have aqualified intermediary and it
has to be independent of theattorney representing you.
So legally it has to be twodistinct entities, even though
some companies have twodifferent entities that can
represent you.
But that's important becauseyou can never have access to or
(11:50):
control the money because thatautomatically precludes a
deferred tax exchange.
You cannot have access to saidfunds until actually never,
because it goes into the targetproperty.
If you do a partial exchange,then at the time that the last
exchange or the target propertyis.
If you do a partial exchange,then at the time that the last
exchange or the target propertyis purchased, then the excess or
the balance can be remitted toyou.
(12:11):
But it's important that theonset, when you're contemplating
an exchange, two to threemonths before you're even going
to go down that road, you talkto professionals and seek out
resources for competent exchangecompanies, because a lot of
times you're talking hundreds ofthousands of dollars and
millions of dollars and you wantsomebody.
You're going to trust and who'sgoing to be there at the end of
(12:32):
the day, who's going to holdthat money and be a good steward
or fiduciary of the funds?
Speaker 1 (12:38):
Yeah, and there's a lot, there's several companies
out there that that's what theydo professionally is they just
do, they're just the qualifiedout there.
That that's what they doprofessionally is they just do.
They're just the qualifiedintermediary and nothing else.
And so it's just a matter of,as an agent, probably
interviewing those guys or justknowing who, who you can trust,
because you've been doing it solong, probably, correct yeah, we
(12:58):
can certainly give you a list.
Speaker 2 (13:00):
You can vet them out yourselves, or we can give you
recommendations on who we'veused in the past and have great
experience with.
Speaker 1 (13:06):
And you know, if we give you a recommendation,
chances are they're pretty rocksolid sure, and so, like
building your team for a, for aland exchange, like to a 1031
exchange, we want to have aqualified intermediary,
intermediary, we want to havethat title company.
Um, that's going to be I, youknow, I don't know what you guys
call them in Minnesota, butthen Nebraska, we call them
(13:29):
title, that's who does all ourtitle work?
And then you know, you kind ofsay that we also need to have a
CPA involved.
Speaker 2 (13:37):
Is that correct?
Yeah, you should always haveyour tax accountant involved.
They want to do some upfronttax planning to strategize and
minimize your tax liability.
I mean, if you're doing adeferred tax exchange and really
there is no tax consequences,but it doesn't hurt to have
somebody that's in your cornerthat's directing you to make
sure you're compliant with theexchange requirements.
Speaker 1 (14:00):
Yeah, that's.
I mean, that's extremely smart.
And again, you're talking aboutthis big of purchases or sales.
It's really important to havethose professionals that kind of
can guide you along the way.
If you don't mind, troy, let'stake a quick break and we will
be right back.
The American Land Seller Podcastis brought to you in part by
(14:22):
LandHubcom podcast is brought toyou in part by landhubcom.
Join us today and experiencethe expertise of Landhub's land
marketing professionals, whetheryou're buying or selling.
Let us show you the way in theever-evolving world of land
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(14:43):
Landhubcom where your landjourney begins.
All right, we're back here withTroy Stafford from High Point
Land Company.
Troy, we were talking duringthe break about, you know, like
it kind of you would think that,because there's no structures
(15:04):
on row crop land or pasturearound or something like that,
that it would be a pretty simpletransaction for agents to take
on.
But that's really not true, isit?
I mean, there's a lot more toit than just what people see on
the top of the land.
Speaker 2 (15:19):
Yeah, there's a number of nuances or
considerations as it comes torow crop land.
You know, fertility is probablyfirst and foremost.
The CPI, or the fertility ofthe soil has a big impact on the
value.
Any tiling, any encumbrances,any easements.
There's a number of nuancesthat are special to land that
(15:42):
most agents don't appreciateunless they're in it day in and
day out.
So that's why it's imperativeto pair with a, you know,
specialized land agent to getthe most value for the property
if you're considering eitherbuying or selling land.
Speaker 1 (15:56):
Yeah, and that's, you know, in the realtor world.
I mean, that's basically one ofthe bylaws of you know the laws
is Article 11, is you don't?
Don't take on projects youdon't know anything about,
essentially, is what I?
I would say that's, uh, so, buteven in this, like the
specialty of, of row crop, oreven like, um, you know, any
(16:19):
sort of a vacant land is, it'sjust that misconception that
people can, you, you know,anybody can do it, because
there's, there's, you know,there's really nothing to it.
Speaker 2 (16:29):
Yeah, I mean from a legal standpoint.
At least in Minnesota anylicensed agent can sell any type
of property.
Should they?
Probably not, because are theygoing to add value to the family
and do what's right by thefamily and get the most at the
end of the day and look out fortheir best interest?
Probably not, even thoughlegally they can.
Speaker 4 (16:47):
Yeah that's definitely true.
Speaker 1 (16:51):
What other kind of misconceptions are there that
you can think of Troy forselling farmland, or selling any
kind of land for that matter?
Speaker 2 (17:01):
One misconception there is around here is well,
grandma's going into a nursinghome, so we really got to sell
the row crop land to pay for anursing home.
And to be quite honest, if youhave any sort of land mass, it's
more than likely the rents aregoing to be enough to offset
that.
But in the event that there arenot excess funds, the county or
(17:23):
the nursing home will, at theend of the day, put a lien on
the farm, which is not the endof the world.
That in and of itself is not areason to sell.
That being said, that lien istaken care of just like any
other judgment or a liability ora loan would be at closing.
So there's really nodetrimental impact if there were
a lien placed on by a nursinghome.
(17:45):
So I wouldn't get too excitedabout that.
It may benefit to hold the landtill grandma passes.
In the event, that stepped upbasis is a consideration because
if you sell now to avoid theyou know lien or the judgment,
you may end up with a taxliability you didn't expect and
have less money at the end ofthe day.
Speaker 1 (18:06):
Yeah, and like to that point.
You know there's a lot of rulesin place to say if you transfer
that property.
So if I grandma gives it to agrandson or to their kids, that
there's got to be timing and allthat stuff involved in that too
, you can't just give it away,Correct?
Speaker 2 (18:27):
Yeah, I mean you can or seven year, look back where
they dissect that transaction tomake sure it was fair and
wasn't doing it to avoid any,you know, liens.
The other thing to consider isif it is gifted.
It's my understanding that itis a carryover basis, so there's
no such thing as a stepped upbasis for a gift of property, so
(18:47):
that may not be the best taxstrategy.
So it's always best to consultan experienced lawyer and or
land agent when it comes totransactions before you
contemplate doing somethingsignificant such as that.
Speaker 1 (19:01):
Well, I think that's big news for people too, because
, you know, I think there's alot of people that that's the
first thing they go to right,we've got to liquidate
everything so we can take careof grandma.
You know, and, and you know,that's great information that
you're given and like, maybe thefirst step should be let's go
find an attorney and see whatthe best route is to take care
of them.
Speaker 2 (19:21):
Yeah, it's kind of I equate it to you know, winning
the lottery.
Slow down before you go.
Cash in the ticket, let's talkabout it.
Get aligned with the rightpeople and then go in there with
an educated approach.
Speaker 1 (19:33):
Yeah, that's solid advice.
Before the break we weretalking about 1031 exchanges.
I kind of got this questionwhen wouldn't you advise
somebody to do a 1031 exchange?
Is there any time where youthink maybe I'd advise them
differently Is?
Speaker 2 (19:52):
there any time where you think maybe I'd advise them
differently.
If somebody has a significantenough basis or they can
structure a sale in a way thatmitigates their taxes, there may
be a reason not to do anexchange.
So if you're not looking at asignificant gain and you're
trying to save maybe $10,000,$20,000 and it's going to cost
you $4,000 or $5,000 inattorney's fees, it probably
(20:15):
wouldn't be warranted.
And that's where it's best toalign with somebody, get some
advice and they'll makerecommendations and ultimately
it's your decision.
But at least you can make aninformed decision as opposed to
deciding in a vacuum.
Speaker 1 (20:28):
Yeah, that's extremely smart is to look at
every look at what your optionsare and see what.
What is the best thing for eachindividual client?
Speaker 2 (20:37):
And I think that's something that you know that
there's.
Speaker 1 (20:39):
One of the reasons that drew me to Highpoint was
because that's just.
You see that all the way acrossthe board it's not just about
let's, let's sell the land.
It's really about sitting atthat table and figuring out what
is best for the client, even ifit's not what's best for maybe
that agent sitting there.
And it's a tribute to theagents at High Point.
I think that they do take thattime, correct.
Speaker 2 (21:06):
Yeah, I mean, all the agents at High Point are going
to do what's best for the client, regardless of if it's what's
best for them.
And you know there's other waysto structure sales you can do,
you know, basically deferredsales where you do a contract
for deed and thereby you, youknow, kick the can down the road
with the tax liability becauseit's based on a pro rata portion
of the principal you receive infuture years.
(21:26):
So that does reduce your taxliability, especially if there's
an eminent need for the moneyor if there's an eminent need
for the money now.
There's a number of ways tostructure the payments such that
you can mitigate your taxliability.
At the end of the day, nobodywants to pay more than their
fair share of taxes or what theyowe.
Speaker 1 (21:47):
Right and to your point, there's tons of ways to
protect the land too, you know,like trusts and all kinds of
stuff.
So again it goes back tofinding that professional and
most of the time theprofessional and agents that I
know most of them can get you intouch with the right folks.
(22:08):
What's some common mistakespeople make when they're getting
ready, like for a 1031 exchange?
What's some commonmisunderstandings or mistakes
you've seen that people makethat you've kind of stepped in
late and tried to help salvage.
Speaker 2 (22:24):
Probably the one I see more often than not is just
not being proactive enough, notsearching in advance to their
sale or not proactively, like Isaid, looking for property or
being under the gun.
Hey, I got this exchange Iclosed a week ago.
(22:44):
Well, that only leaves youabout 30 some days to find
another replacement property andnot partnering up with the
right people.
I've seen people do 1031exchanges that didn't have the
proper language included in thepurchase agreement because that
could preclude it or that couldmake that non-deferred tax
(23:05):
exchange and it could ultimatelybe a taxable transaction, when
all along you thought you werealigning to do a deferred tax
exchange and they didn't get theright advice up front.
So, like you said before, it'simperative to align with people
who A have experience, b knowthe rules and, c are looking out
for your best interest.
Speaker 1 (23:24):
Right, and I have actually seen that in the past
where it's come back where theythought they executed an
exchange and it ended up being ataxable event because of a
misstep, like we talked aboutthat earlier.
That money cannot touch you.
You have to have a qualifiedintermediary to handle the funds
(23:44):
because you can't touch it.
It has to go from one person tothe person selling the new land
you're's selling, the new landyou're buying or the new
property you're buying, and sothere's a lot of moving parts
which goes back to make sureyou're working with the
professional right.
I think we've hammered that out, correct?
We talked a little bit aboutyou know, like grandma, having
(24:08):
to go to the nursing home.
Tell me just what is thedifference between selling
inherited land versus landyou've owned for a long time?
Speaker 2 (24:22):
Well, regardless if you inherit property, you buy
the property.
It's imperative that you firstunderstand your basis.
Your basis is quote unquotewhat you paid for the land and
your basis would include any.
Is quote unquote what you paidfor the land and your basis
would include any improvementsmade to the property.
And then sometimes, in the caseof it coming through an estate,
your basis may be a stepped upbasis and that is essentially
(24:44):
what was the value of theproperty at the day you
inherited, ie the decedentpassed.
So in theory, if it's properlyset up, you could get a stepped
up basis if it comes eitherthrough a traditional estate or
through a trust agreement, aslong as it is a revocable trust.
(25:05):
It's my understanding thatnon-revocable trusts do not get
a stepped up basis, butrevocable trusts get a stepped
up basis.
So what that entails is, as thedate of death of the decedent,
your basis is the value of thatland and the IRS states that it
does need to be a qualifiedindependent appraiser that
(25:25):
determines that value.
It cannot be a broker's opinion, it cannot be a broker's
listing amount.
It's basically you need to havethat appraisal to establish
your basis and it doesn't meanthat you need to do it
immediately because you can do aretrospective appraisal and
that's still as good as anappraisal done that day.
Granted, it's easier to do anappraisal real time as opposed
(25:46):
to retrospectively, but it'simportant to understand because
that, at the end of the day, isyour basis retrospectively.
But it's important tounderstand because that, at the
end of the day, is your basisand that's what you compare to
the sales price to determineyour capital gains or losses for
said property.
The other important part is todifferentiate between capital
gains in their short term, whichare taxed at your ordinary
(26:07):
income rate, and then there'slong term, which means you held
the property for one year ormore, and then those are taxed
at a much more favorable rate,at least at the federal level.
Each state is different as faras applicability for tax rates,
but the federal tax rates aremuch lower for assets held
longer than a year.
Speaker 1 (26:29):
Yeah, that's very good information.
If you don't mind mind, let'stake a break, and uh, we will be
right back land isn't just dirt.
Speaker 4 (26:41):
It's where memories are made, families are raised
and livelihoods are built.
But when it comes time to sellor buy, the weight of the
decision is heavy.
Where do you even start?
Who can you trust to guide you?
(27:03):
For too long, land transactionshave been treated like a simple
exchange Numbers on a paper, asignature on a line.
But it's more than that.
At High Point Land Company, wedon't just list land, we walk it
.
We learn its story and we findthe right buyer who understands
its worth.
You are not just another deal.
(27:27):
You are the steward ofsomething bigger and we're here
to help you navigate every stepdeal.
You are the steward ofsomething bigger and we're here
to help you navigate every stepof the way.
When it's time to sell, whenit's time to buy.
We're here because land is morethan just land.
(27:51):
It's your legacy.
Speaker 1 (28:05):
All right, we're back here with Troy Stafford from
High Point Land Company.
What a great company, Troy, youknow I got to say joined the
last year it's been.
I still am looking forward tolearning everybody, like meeting
everybody and getting to knowthem more, just because the way
we're spread out it's reallytough.
So we've got that trainingcoming up in May and I'm super
(28:28):
looking forward to just gettingto know people a little bit
better.
But what's your?
You've been with them for quitea while.
What's your experience?
You've got all good, fuzzythings to say about them.
No bad right.
Speaker 2 (28:40):
Yeah, it's really a great place to work.
I wish I would have found it orconsidered it some 20 years ago
, when I was earlier in mycareer, but, like I said earlier
in our podcast, you know, it isa very comprehensive growth
orientated firm that allows usto draw on a variety of
expertises across across all ofour specialties and we all bring
(29:00):
value to the table, butcollectively we add the most
value to each and every one ofour clients.
Speaker 1 (29:06):
Right, and it's just.
It's great to just have.
You can call anybody and theywill take the time.
That was one thing I found,even just in her.
Hey, my name is Kobe, I've gota problem or I got a question.
Somebody said you know aboutthis.
So, yeah, it's just been agreat experience for me and,
after having kind of a roughyear or so trying to find myself
(29:27):
and make things, figure thingsout, so it's been a great deal
myself and make things figurethings out, so it's been a great
deal.
So I always think when we'regoing through some of this stuff
, that we come at it from such ahigh level that a lot of times
we lose people.
So, if you don't mind, let's goback to like just basis.
Right, you were talking aboutthe basis and then a stepped up
(29:48):
basis.
Can you just kind of bring thatback down to a level of, maybe,
where people don't have anyidea what we're talking about
and just kind of explain whatexactly is that?
Speaker 2 (29:58):
All right.
Well, speaking in layman'sterms, basis is referring to
what you paid for a property.
So if you bought the property,say, for $100,000, you put
$50,000 worth of improvementsinto it, your basis or your cost
would be $150,000.
When you go to sell thatproperty you compare your basis
(30:21):
to whatever the sales proceedswere.
So if you go to sell it for$200,000 and your basis is
$150,000 by virtue of what youpaid and put into it, you have a
gain there of $50,000.
So I think one of the confusingparts is when we talk about
stepped up basis for inheritedproperty.
(30:42):
When you inherit a property,clearly you probably didn't pay
anything for it.
So the IRS allows you, based onthe decedent's date of death,
to determine your basis based onan appraisal.
So in essence, even though youdidn't pay for the property,
that appraisal amount determineswhat your basis is.
(31:04):
So it's just as if that persondied that day.
You took whatever the value was.
You took that out of your ownpocket, put that into the land.
That's in essence what you paidfor it.
So you take that amount, add toit any improvements you might
have and that's your adjustedbasis to determine your gain or
loss.
So even though you didn't inessence pay for it.
(31:26):
You did by virtue of thestepped up basis through the
appraisal Sure.
Speaker 1 (31:33):
Does that make sense?
Yeah, that was one of thebetter ways I've heard that
explained.
I think I might even understandit now.
Speaker 2 (31:41):
So, it's just like you bought the property with
that money even though no cashtraded hands.
Speaker 1 (31:48):
Perfect, that makes total sense to me.
Hands perfect, nope, that makestotal sense to me.
Um.
So, along with some other stuffto maybe clear up, is um it, if
I, if I sell my farm, um, do Ihave to go buy another farm on a
like kind exchange troy?
Speaker 2 (32:04):
no, like kind exchange is kind of a
nomenclature that'scounterintuitive.
So if you sell row crop, thatdoesn't mean you necessarily
need to buy row crop, it meansyou need to buy another income
producing assets.
So we see it happen all thetime where somebody has an
apartment complex and they wantto do a late kind of exchange
(32:26):
into row crop land.
That is perfectly permissibleunder the regulations.
What the IRS says it has to beheld for income producing and it
can't be speculative.
So you can't say, well, I'mgoing to buy this 40 acres on
the fringe of town, that's notincome producing, hoping that
the value increases and turnaround and flip it.
(32:48):
It has to be income producing.
That's probably the underlyingpart of it that makes it a
like-kind exchange.
You're replacing one incomeproducing property for another
income producing property.
Speaker 1 (33:01):
If I had a speculative property in one
place and I sold that to buyanother speculative property, is
that a like-kind?
Speaker 2 (33:10):
It would be a hard.
That would be a tough stretchIf neither one were income
producing.
That would be a tough stretch,as if neither one were income
producing.
Speaker 1 (33:16):
that would be very tough.
Yeah, yeah, so it's kind of.
It's the.
The 1031 exchange is very muchfor um producers or investors to
use, a tool where they can um,um, like, change properties Is
that, is that fair tool wherethey can change properties.
Speaker 2 (33:36):
Is that fair, where they can exchange
income-producing properties,especially when their basis is
low and they're faced withsubstantial capital gains?
Yes, Perfect.
Speaker 1 (33:51):
What else can you think of about an exchange that
we didn't discuss?
Speaker 2 (33:56):
I just think it's imperative to be kind of
cognizant of some of theoverriding rules.
You know, from the day yourelinquish your property you
have 45 days to identify threereplacement properties.
You know you can do four ifit's 200% or less of the value.
But that gets to be reallymuddy.
But it's imperative that youidentify those three properties
(34:19):
and then that identification isheld A with the intermediary or
with the attorney that's workingwith you on the transaction and
then from that time, the day ofclose, you have 180 days to
close on one of three saidproperties.
So once you identify those three, you are locked into one of
those three properties and let'sjust say everything goes south
(34:42):
and you can't end up buying oneof those three properties.
So basically you're not doingan exchange and then you're
facing the tax liabilityassociated with that.
So it's not the end of theworld.
You just got to pay the taxpiper their fair share.
So you're precluded from doingan exchange.
The other thing is, when you'redoing your sales transaction,
(35:05):
that is, exchange property, themore fluid you can be with that
closing date so you can workaround those 45 and 180 days,
the more you're going to haveflexibility in replacing it.
So if you have a buyer that canbe fluid and leave that closing
day or that window open say youknow, a six month window that's
(35:26):
going to give you a lot morelatitude in finding a
replacement property.
Speaker 1 (35:31):
Yeah, that's important to consider too is
that that's one of the reasonswhy you want to make sure on
your contract that it's denotedthat this is either a 1031
exchange or a possible 1031exchange, for not only the fact
that you have to have that needsto be on there and the language
(35:52):
needs to be right for theexchange, but also to let them
know that there may be somehiccups and delays too.
Speaker 2 (35:58):
Yeah, and you always want to incorporate that
language in your purchasecontract or sales contract, even
if you don't do an exchange.
It just gives you or reservesyou the right to do an exchange.
It doesn't require you to do anexchange.
So, at the end of the day, ifyou have that language and you
don't do an exchange, no harm,no fault, yeah.
Speaker 1 (36:14):
So at the end, of the day, if you have that language
and you don't do an exchange, noharm, no fault.
Yeah, and I have had clients inthe past that are like no, kobe
, I don't want that in there, Idon't want to muck anything up.
And then in the end it's likeoh, we found this other one.
Do you suppose they're going tobe all right with us doing an
addendum or an amendment tochange this to a 1031?
And a lot of times the sellersmay or you know they may be like
(36:35):
nope, are not interested inthat.
Speaker 2 (36:37):
Yeah, it's just better to have it in there from
the get-go and if you don'tutilize it like I said no harm.
Speaker 1 (36:42):
Yeah, tax day has a little bit of play into your 180
days, correct, if I rememberright.
I'm not a pro on it, but Ithink if it has to be done
before April 15th, correct.
Speaker 2 (36:56):
Yeah, that's only for exchanges that occur right at
year-end, so you've got to becognizant of that.
If it's outside of thatyear-end timeframe, then you
don't have to be as stringent.
But that is an important pointto know, and if you partner with
somebody who understands thetax regulations, they're going
to guide you properly, so youdon't have to worry about those
little nuances.
Speaker 1 (37:16):
Yes, I just wanted to make myself sound smart.
Speaker 2 (37:18):
You've been sounding extremely smart, you did a great
job.
Speaker 1 (37:21):
Yes, I just wanted to .
Hey, I threw some nugget ofknowledge out there that I knew,
Troy.
Speaker 2 (37:26):
Something I forgot to mention, but that was a very
good point that was the onlything.
Speaker 1 (37:30):
I think I caught the whole time time, though you
you've definitely nailed it.
So we're getting ready to closeup here.
What, what else do you thinkpeople should you know like
there's other ways to to whenyou're dealing with property,
there's other ways to helpmitigate taxes?
(37:53):
What, what other ways can youthink of?
That would be a good thing forpeople to maybe research when
they're thinking about sellingsome property.
Speaker 2 (38:01):
Well, there's certainly Delaware Statutory
Trusts.
They're pretty common.
It does give you some morelatitude and it allows you to
roll forward those gains intosubsequent years and you can
re-enroll them, is myunderstanding, into subsequent
years and you can re-enroll them, is my understanding.
There's deferred sales trust.
There's also creative paymentstructures.
Contract for deeds basicallygets you the same result.
(38:24):
You kick the can down the roadwhen you're in a lower tax
bracket, ideally, or you utilizethe lower capital gains rates
in the future.
So there's a number of taxplanning tools that aren't
necessarily as complex and thoseyou can explore with your tax
accountant, your attorney orsomebody who's experienced in
(38:45):
land sales that can guide you,like I said before, so you can
make an informed decision andyou're not making decisions in a
vacuum.
That's probably the mostimportant thing.
If I could get anybody to walkaway is to do your homework, get
a better understanding, becausethe more you know, the more
your situation is going to bebettered by your knowledge.
Speaker 1 (39:05):
You know that's really smart.
I mean, when you talk aboutland contracts, that's not
something, that's rare.
I mean that happens quite a bitwhen you're talking about farm
ground and things like that.
They might work out better fora down payment.
And then you know seven yearsof payments for the seller and
the buyer.
Speaker 2 (39:26):
Yeah, I mean it's a win-win in the sense, with
interest rates as high as theyare now, you're going to get
more for your money being in acontract for deed and they're
going to get a lower rate.
And number two you know youdon't necessarily need a big
downswing because there's notmuch they can do to the land
that's going to harm it ordevalue it.
Granted, if it was covered, youknow, with timber and they go
(39:46):
in and harvest it, that's awhole different scenario.
But row crop land, I mean,there's not a lot they can do to
harm the value, as said land,outside of depleting the soil
which, you know, with someinputs and fertilizer will bring
it back to normal.
So I don't get too concernedabout, you know, a big enough
downswing.
Speaker 1 (40:04):
As far as contractor deeds are concerned, Right and
contractor deeds should not bemisunderstood.
For rent to own correct Like acontractor deed is you're
transferring that property tothe buyer and then you hold a
contract on it like the bank.
Essentially correct.
Speaker 2 (40:22):
Yeah, in essence you don't sign over the deed until
the contract is paid in full.
So there's really no risk toyou.
And if they default on it, youget that set piece of land back.
And not only that, they forfeitall the payments they've made.
So it's really kind of awin-win.
In the event they get in aprecarious or you know, a
difficult financial position,you get the property back and
(40:45):
you get the payments that theymade and you get to retain them.
Speaker 1 (40:50):
It depends.
I've had a friend of mine fromWestern Nebraska that's gotten a
bar back about four times andhe really wouldn't like to not
have it back.
Speaker 2 (40:58):
I'm more headache with that.
With row crop land, it's prettysimple.
You collect two checks a yearand you write a couple checks
for property tax, and that'sabout it.
Yeah, farm grounds.
Speaker 1 (41:07):
Farm grounds are a lot easier to deal with than a
bar in Scotts Bluff, but anyway,absolutely Well in closing, in
closing, man did you have?
Speaker 2 (41:18):
anything else?
You could think of today or no.
I certainly appreciate yourtime and uh going through these
things and certainly if peoplewant to reach out um get some
more information, I'd be morethan happy to consult or
recommend somebody on that samevein, as far as a professional
they can talk to.
Speaker 1 (41:39):
Yeah, and so how do folks get a hold of you, troy,
if they have some questions, orwhat's the best?
Speaker 2 (41:42):
way to get you.
I can be reached by virtue ofmy phone at 507-259-3047, or you
can email at troy athighpointlandcompanycom.
All one word, just as it soundsat highpointlandcompanycom.
All one word, just as it sounds, highpointlandcompanycom.
There's a number ofconsiderations for various state
implications and I can't speakto that.
(42:03):
But taxes at the federal levelare the same across all 50
states, so that's prettyconsistent.
So I try not to go too deep inthe weeds on taxes.
But you know, certainly get youto the right professional to
guide you at the end of the dayis important.
Speaker 1 (42:20):
I think that's you know.
That's at least half the battle.
Right is to hold your hand upand say I don't know and point
to the guy that does you know.
So I think that's more aboutwhat being a professional about
is than just the knowledge thatyou have.
Speaker 2 (42:38):
Sure, and we're all specialists in our own nature,
but you just don't know what youdon't know, and that's why you
got to seek out the informationand align with the right people
to guide you, to make sure, atthe end of the day, you're
compliant, because theserequirements are somewhat
complex and it's important thatyou stay within the boundaries
or confinements of theregulations.
Speaker 1 (42:57):
Absolutely Well, sir.
I appreciate your time todayand we will see you all down the
road.
Speaker 3 (43:05):
As we wrap up another episode of the American Land
Seller Podcast.
Thank you for joining us.
Visit wwwamericanlandsellercomand find us on one of your
favorite podcast platforms.
If you would be so kind and youenjoyed today's insights,
please like, subscribe, rate,follow and review us on whatever
app you are listening orwatching on.
(43:26):
Connect with us on social mediafor updates until next week.
Kobe wishes you success in yourland endeavors.
God bless you and have a greatweek.
Speaker 1 (43:36):
The American Land Seller is brought to you in part
by LandHubcom.
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Visitwwwhighpointlandcompanycom today
and experience the difference.
High Point Land Company a trueleader in land sales.
Today on the American Land Seller, we have a
must-listen-to conversation forland professionals, rural
property owners and anyonenavigating the world of land
sales.
We're diving into somethingthat comes up often but isn't
often well understood the 1031exchanges and tax smart
strategies in land deals,whether you're selling inherited
(00:22):
ground, looking to defercapital gains or trying to help
a client reinvest into more landthis episode is packed with
insight you can use right now.
I'm joined by Troy Stafford fromHigh Point Land Company, a guy
who brings both ag roots andfinancial expertise to the table
.
Troy grew up working on dairyfarms in Dodge County, minnesota
(00:43):
, and has spent his entire lifein the community.
After seven years in publicaccounting, he went on to serve
as CFO and controller roles inprivate industry, including over
a decade with a producer-ownedfarm cooperative.
He holds an MBA and active CPAlicense, as well as a real
estate license and a deepunderstanding of how tax
(01:04):
strategy plays out in real worldland transactions.
On top of that, Troy gives backas a volunteer firefighter,
first responder and EDAcommissioner for both Dodge
County and the city ofManorville.
In this episode, we break downhow 1031 exchanges actually work
, what qualifies, what doesn'tand the common traps that can
(01:25):
cost landowners big money.
Oh, and we also talked throughsome common misunderstandings in
row crop sales that can trip upeven the experienced sellers
and agents.
Whether you're a landowner,investor or agent trying to
better serve your clients,you'll walk away from this
episode with a stronger handleon the financial side of land.
This episode is packed withinsight and real-life experience
(01:47):
.
You won't want to miss it.
Speaker 3 (01:51):
Welcome to the American Land Seller Podcast
with your host, coby Rickardson.
Coby is an accredited landconsultant and multi-state land
broker with High Point LandCompany.
Join us each week as we exploreall things land.
We bring you fresh insights andexpert guests on sales,
marketing, regulations,economics and so much more.
(02:11):
Visit wwwamericanlandsellercomand find us on one of your
favorite podcast platforms.
Speaker 4 (02:19):
Okay, Kobe and our special guests, let's get
started.
Speaker 1 (02:26):
Toby and our special guests.
Let's get started.
Welcome back to the AmericanLand Seller Podcast.
Exciting day today we have TroyStafford from High Point Land
Company.
Troy, how are you today, doingwonderful, and yourself, oh,
doing great man.
How's things in Minnesota?
Speaker 2 (02:42):
It's very tepid here.
People are getting excited.
It's getting nice out.
People are getting anxious toget out and work some ground as
soon as this frost leaves.
Speaker 1 (02:51):
That is awesome.
That is very good.
You seem to be killing itlately, Troy Like just got all
kinds of stuff for sale andgetting stuff under contract and
must be a great part of thecountry to be working in right
now.
Speaker 2 (03:04):
Yeah, it's really exciting times up here.
I've seen a number of exchangebuyers come my way by virtue of
my background and my CPA license.
People trust that, so it worksout well and sold a number of
properties and have quite aplethora of listings right now
for the take-in.
Speaker 1 (03:21):
Yeah, I was just going through and looking at
that that is amazing.
So congratulations to you onall your success.
So I wanted to talk just startout by you and I both deal quite
a bit in row crop salesfarmland.
I wanted to talk just a littlebit about.
You kind of have some thoughtson some misconceptions there are
(03:45):
in row crop and marketing andstuff like that, you know if you
can just get into a little bitof that for me, I'd really
appreciate it.
Speaker 2 (03:54):
Sure, I guess the biggest misconception we run
across, especially with estatesor absentee landowners, is that
well, I can't sell my row cropland because it's under contract
and so-and-so is going to runit for the upcoming year and
until that lease is done Ireally can't sell the land.
My hands are tied, and that'sprobably the biggest misnomer or
(04:14):
misconception we run across.
At least in the state ofMinnesota it's almost always.
The lease is transferred andthe new owner the land assumes
the rights and responsibilitiesof said lease.
Those payments are trued up atclosing and really regardless of
how the payment structure isfor the lease payments, that can
(04:36):
all be shored up in a simplepurchase agreement and
subsequent closing.
So that's really amisconception that most people
believe in.
But in reality it's really nota hurdle or obstacle whatsoever
with selling row crop land.
Speaker 1 (04:50):
Right and I think that's kind of true in most of
the states that I am in too youcan transfer that lease to the
new buyer without any realproblems that I know of.
So that's a great point thatyou make there.
Speaker 2 (05:04):
Yeah, and then, generally speaking, the rents
are prorated based on days ofownership.
So I mean that can all benegotiated well as well.
If the sellers want to retainthe rents, that's certainly fine
too, as long as it slows upfront.
Speaker 1 (05:22):
Yeah, I've seen like you pay all the taxes, you get
all the rent type of stuff too.
So, yeah, there's tons ofdifferent ways to do it, but
that's a great point that Ithink a lot of people even if
you're in a multi-year lease, ifsomebody is willing to take
that on.
And I've even seen farmers thathave bought, you know, two
three-year leases just so theycan have the land at the end of
it and take it on the rent.
Speaker 2 (05:40):
So excellent point, so no, so excellent point.
Speaker 1 (05:42):
So you know when you're, when you're dealing with
row crop sales and Nebraska, Ithink we're probably more
irrigated here.
That's where the higher dollarstuff is.
I'm not sure Like in.
Speaker 2 (05:56):
Minnesota.
Speaker 1 (05:56):
I think you guys are still in where it's a lot of dry
land.
What?
What kind of properties are youguys just basically seeing
change hands most of the time?
What kind of properties?
Speaker 2 (06:05):
are you guys just basically seeing change hands
most of the time Down in mytrade territories, which are
basically southeastern Minnesota, it's mostly row crop land.
There's not a lot of mixed-useland.
We're in some very fertilesoils so they don't have any
wasteland per se.
I mean there is some right away.
There's some waterways toprevent erosion but for the most
part everything I sell isprobably 95% tillable.
(06:28):
So it's pretty consistent andit's very flat, black and square
in this area.
So very high CPIs, consistentlyin the mid-90s.
Speaker 1 (06:37):
Nice.
Well, one of the things I thinkis kind of interesting.
I think people are going tofind interesting is that you are
a licensed CPA.
Speaker 2 (06:47):
Correct, that is correct.
I have been since 1992.
Speaker 1 (06:50):
How does that help you with your land sales
business?
Because you're not doing bothright.
You're just a full-time landbroker.
You're not doing CPA stuffstill.
Speaker 2 (07:03):
Part of my land transactions.
There's an inherent knowledgebase that I can add value to a
given transaction.
But I'm not actively in publicaccounting.
But I do keep the licenseactive so I can guide people as
it relates to tax planning andor tax consequences of selling
and best ways to structure salesso they mitigate the amount of
(07:26):
tax liability they're exposed to.
Speaker 1 (07:28):
Yeah.
So kind of like a lot of us,you've got a lot of in your
history.
You've got a ton of experiencethat helps you with helps your
clients, like from the timeworking on the farm all the way
through working with co-ops andfarmers and stuff like tie that
(07:50):
into how that makes you one ofthe top land guys in Minnesota
right now.
Speaker 2 (07:55):
Well, I have a sincere appreciation for all
that growers and producers gothrough, all through college and
high school.
I did achieve that appreciationby working on two respective
dairy farms and you know it's alot of work that goes into
maintaining cattle, maintainingcrops and the like.
So and then, like I said, withmy tenure in the co-op world, I
(08:20):
was CFO controller, so I had aneven greater appreciation for
what they endure and you know mygoal at the end of the day is
to help them, you know, addvalue in the transaction and
bring the most to the partiesthat I represent.
So, being a CPA, there's aninherent level of trust.
Just like you know, I alwayssay you trust three people your
mom, your attorney and youraccountant.
(08:42):
So you know that does give me acompetitive advantage because I
do know quite a bit more aboutexchanges and help the number of
exchange buyers and or sellersmake sure they're compliant with
the stringent requirements.
Speaker 1 (08:57):
Well, and I think you've been a huge asset to
other agents at High Point toowith being able to help them
navigate through, answerquestions for their client,
maybe even get them in touchwith a good CPA in the area, or
at least let us know what we'relooking for when we're looking
for one.
So that's got to be a hugeadvantage as well, wouldn't you
say?
Speaker 2 (09:17):
Yeah, and that's what's great about being with
High Point.
We have so many agents that areso diverse on their knowledge
base we can pretty much lean oneach other for any one
particular topic and we haveexperts you know, multiple
experts in the same topic so wecan bounce ideas off and we have
a conference call every weekjust to run scenarios by various
agents and that adds value toall of our clients as a whole.
Speaker 1 (09:39):
Yeah, no, that's absolutely true.
That's been my experience sincejoining High.
Point has been just like.
There's just a ton of talentboth on the field and on the
bench any given day, so a lot todraw on as far as being an
agent.
Even in Nebraska, I draw on youguys that are in other parts of
(10:00):
the country for lots ofknowledge.
So let's talk just a little bitabout 1031 exchanges, if you
don't mind.
When does it make sense forsomeone to start thinking about
reaching out to professionals ifthey're going to want to maybe
do a like-kind exchange, andthen what kind of does that
(10:21):
process look like?
Speaker 2 (10:22):
And then what kind of does that process look like?
Well, if you're contemplatingan exchange, the sooner you
initiate a search and you alsostart reaching out to
professionals whether it be taxaccountants, attorneys,
experienced land agents thathave 1031 exchange experience
the better off you're going tobe, Because ideally, you want to
(10:42):
start searching before you listyour property and or get it
under contract, because there isa very short time frame from
the time you close on theproperty you're relinquishing to
the target property and that'simperative that you stay within
those strict requirements or youmay not be able to exchange
your property to exchange yourproperty.
Speaker 1 (11:08):
Yeah, and I think that's the big thing is like
following the rules.
It's extremely complex.
What are your thoughts on likeyour standard title company
versus hiring like a 1031exchange professionals?
You know, does it just kind offind out who knows what they're
doing or, from experience, thatyou know who to guide those guys
to?
Speaker 2 (11:27):
Well, the unique part about a deferred tax exchange
is you do have to have aqualified intermediary and it
has to be independent of theattorney representing you.
So legally it has to be twodistinct entities, even though
some companies have twodifferent entities that can
represent you.
But that's important becauseyou can never have access to or
(11:50):
control the money because thatautomatically precludes a
deferred tax exchange.
You cannot have access to saidfunds until actually never,
because it goes into the targetproperty.
If you do a partial exchange,then at the time that the last
exchange or the target propertyis.
If you do a partial exchange,then at the time that the last
exchange or the target propertyis purchased, then the excess or
the balance can be remitted toyou.
(12:11):
But it's important that theonset, when you're contemplating
an exchange, two to threemonths before you're even going
to go down that road, you talkto professionals and seek out
resources for competent exchangecompanies, because a lot of
times you're talking hundreds ofthousands of dollars and
millions of dollars and you wantsomebody.
You're going to trust and who'sgoing to be there at the end of
(12:32):
the day, who's going to holdthat money and be a good steward
or fiduciary of the funds?
Speaker 1 (12:38):
Yeah, and there's a lot, there's several companies
out there that that's what theydo professionally is they just
do, they're just the qualifiedout there.
That that's what they doprofessionally is they just do.
They're just the qualifiedintermediary and nothing else.
And so it's just a matter of,as an agent, probably
interviewing those guys or justknowing who, who you can trust,
because you've been doing it solong, probably, correct yeah, we
(12:58):
can certainly give you a list.
Speaker 2 (13:00):
You can vet them out yourselves, or we can give you
recommendations on who we'veused in the past and have great
experience with.
Speaker 1 (13:06):
And you know, if we give you a recommendation,
chances are they're pretty rocksolid sure, and so, like
building your team for a, for aland exchange, like to a 1031
exchange, we want to have aqualified intermediary,
intermediary, we want to havethat title company.
Um, that's going to be I, youknow, I don't know what you guys
call them in Minnesota, butthen Nebraska, we call them
(13:29):
title, that's who does all ourtitle work?
And then you know, you kind ofsay that we also need to have a
CPA involved.
Speaker 2 (13:37):
Is that correct?
Yeah, you should always haveyour tax accountant involved.
They want to do some upfronttax planning to strategize and
minimize your tax liability.
I mean, if you're doing adeferred tax exchange and really
there is no tax consequences,but it doesn't hurt to have
somebody that's in your cornerthat's directing you to make
sure you're compliant with theexchange requirements.
Speaker 1 (14:00):
Yeah, that's.
I mean, that's extremely smart.
And again, you're talking aboutthis big of purchases or sales.
It's really important to havethose professionals that kind of
can guide you along the way.
If you don't mind, troy, let'stake a quick break and we will
be right back.
The American Land Seller Podcastis brought to you in part by
(14:22):
LandHubcom podcast is brought toyou in part by landhubcom.
Join us today and experiencethe expertise of Landhub's land
marketing professionals, whetheryou're buying or selling.
Let us show you the way in theever-evolving world of land
transactions.
Visit landhubcom and discoverwhat the future of land
marketing looks like.
(14:43):
Landhubcom where your landjourney begins.
All right, we're back here withTroy Stafford from High Point
Land Company.
Troy, we were talking duringthe break about, you know, like
it kind of you would think that,because there's no structures
(15:04):
on row crop land or pasturearound or something like that,
that it would be a pretty simpletransaction for agents to take
on.
But that's really not true, isit?
I mean, there's a lot more toit than just what people see on
the top of the land.
Speaker 2 (15:19):
Yeah, there's a number of nuances or
considerations as it comes torow crop land.
You know, fertility is probablyfirst and foremost.
The CPI, or the fertility ofthe soil has a big impact on the
value.
Any tiling, any encumbrances,any easements.
There's a number of nuancesthat are special to land that
(15:42):
most agents don't appreciateunless they're in it day in and
day out.
So that's why it's imperativeto pair with a, you know,
specialized land agent to getthe most value for the property
if you're considering eitherbuying or selling land.
Speaker 1 (15:56):
Yeah, and that's, you know, in the realtor world.
I mean, that's basically one ofthe bylaws of you know the laws
is Article 11, is you don't?
Don't take on projects youdon't know anything about,
essentially, is what I?
I would say that's, uh, so, buteven in this, like the
specialty of, of row crop, oreven like, um, you know, any
(16:19):
sort of a vacant land is, it'sjust that misconception that
people can, you, you know,anybody can do it, because
there's, there's, you know,there's really nothing to it.
Speaker 2 (16:29):
Yeah, I mean from a legal standpoint.
At least in Minnesota anylicensed agent can sell any type
of property.
Should they?
Probably not, because are theygoing to add value to the family
and do what's right by thefamily and get the most at the
end of the day and look out fortheir best interest?
Probably not, even thoughlegally they can.
Speaker 4 (16:47):
Yeah that's definitely true.
Speaker 1 (16:51):
What other kind of misconceptions are there that
you can think of Troy forselling farmland, or selling any
kind of land for that matter?
Speaker 2 (17:01):
One misconception there is around here is well,
grandma's going into a nursinghome, so we really got to sell
the row crop land to pay for anursing home.
And to be quite honest, if youhave any sort of land mass, it's
more than likely the rents aregoing to be enough to offset
that.
But in the event that there arenot excess funds, the county or
(17:23):
the nursing home will, at theend of the day, put a lien on
the farm, which is not the endof the world.
That in and of itself is not areason to sell.
That being said, that lien istaken care of just like any
other judgment or a liability ora loan would be at closing.
So there's really nodetrimental impact if there were
a lien placed on by a nursinghome.
(17:45):
So I wouldn't get too excitedabout that.
It may benefit to hold the landtill grandma passes.
In the event, that stepped upbasis is a consideration because
if you sell now to avoid theyou know lien or the judgment,
you may end up with a taxliability you didn't expect and
have less money at the end ofthe day.
Speaker 1 (18:06):
Yeah, and like to that point.
You know there's a lot of rulesin place to say if you transfer
that property.
So if I grandma gives it to agrandson or to their kids, that
there's got to be timing and allthat stuff involved in that too
, you can't just give it away,Correct?
Speaker 2 (18:27):
Yeah, I mean you can or seven year, look back where
they dissect that transaction tomake sure it was fair and
wasn't doing it to avoid any,you know, liens.
The other thing to consider isif it is gifted.
It's my understanding that itis a carryover basis, so there's
no such thing as a stepped upbasis for a gift of property, so
(18:47):
that may not be the best taxstrategy.
So it's always best to consultan experienced lawyer and or
land agent when it comes totransactions before you
contemplate doing somethingsignificant such as that.
Speaker 1 (19:01):
Well, I think that's big news for people too, because
, you know, I think there's alot of people that that's the
first thing they go to right,we've got to liquidate
everything so we can take careof grandma.
You know, and, and you know,that's great information that
you're given and like, maybe thefirst step should be let's go
find an attorney and see whatthe best route is to take care
of them.
Speaker 2 (19:21):
Yeah, it's kind of I equate it to you know, winning
the lottery.
Slow down before you go.
Cash in the ticket, let's talkabout it.
Get aligned with the rightpeople and then go in there with
an educated approach.
Speaker 1 (19:33):
Yeah, that's solid advice.
Before the break we weretalking about 1031 exchanges.
I kind of got this questionwhen wouldn't you advise
somebody to do a 1031 exchange?
Is there any time where youthink maybe I'd advise them
differently Is?
Speaker 2 (19:52):
there any time where you think maybe I'd advise them
differently.
If somebody has a significantenough basis or they can
structure a sale in a way thatmitigates their taxes, there may
be a reason not to do anexchange.
So if you're not looking at asignificant gain and you're
trying to save maybe $10,000,$20,000 and it's going to cost
you $4,000 or $5,000 inattorney's fees, it probably
(20:15):
wouldn't be warranted.
And that's where it's best toalign with somebody, get some
advice and they'll makerecommendations and ultimately
it's your decision.
But at least you can make aninformed decision as opposed to
deciding in a vacuum.
Speaker 1 (20:28):
Yeah, that's extremely smart is to look at
every look at what your optionsare and see what.
What is the best thing for eachindividual client?
Speaker 2 (20:37):
And I think that's something that you know that
there's.
Speaker 1 (20:39):
One of the reasons that drew me to Highpoint was
because that's just.
You see that all the way acrossthe board it's not just about
let's, let's sell the land.
It's really about sitting atthat table and figuring out what
is best for the client, even ifit's not what's best for maybe
that agent sitting there.
And it's a tribute to theagents at High Point.
I think that they do take thattime, correct.
Speaker 2 (21:06):
Yeah, I mean, all the agents at High Point are going
to do what's best for the client, regardless of if it's what's
best for them.
And you know there's other waysto structure sales you can do,
you know, basically deferredsales where you do a contract
for deed and thereby you, youknow, kick the can down the road
with the tax liability becauseit's based on a pro rata portion
of the principal you receive infuture years.
(21:26):
So that does reduce your taxliability, especially if there's
an eminent need for the moneyor if there's an eminent need
for the money now.
There's a number of ways tostructure the payments such that
you can mitigate your taxliability.
At the end of the day, nobodywants to pay more than their
fair share of taxes or what theyowe.
Speaker 1 (21:47):
Right and to your point, there's tons of ways to
protect the land too, you know,like trusts and all kinds of
stuff.
So again it goes back tofinding that professional and
most of the time theprofessional and agents that I
know most of them can get you intouch with the right folks.
(22:08):
What's some common mistakespeople make when they're getting
ready, like for a 1031 exchange?
What's some commonmisunderstandings or mistakes
you've seen that people makethat you've kind of stepped in
late and tried to help salvage.
Speaker 2 (22:24):
Probably the one I see more often than not is just
not being proactive enough, notsearching in advance to their
sale or not proactively, like Isaid, looking for property or
being under the gun.
Hey, I got this exchange Iclosed a week ago.
(22:44):
Well, that only leaves youabout 30 some days to find
another replacement property andnot partnering up with the
right people.
I've seen people do 1031exchanges that didn't have the
proper language included in thepurchase agreement because that
could preclude it or that couldmake that non-deferred tax
(23:05):
exchange and it could ultimatelybe a taxable transaction, when
all along you thought you werealigning to do a deferred tax
exchange and they didn't get theright advice up front.
So, like you said before, it'simperative to align with people
who A have experience, b knowthe rules and, c are looking out
for your best interest.
Speaker 1 (23:24):
Right, and I have actually seen that in the past
where it's come back where theythought they executed an
exchange and it ended up being ataxable event because of a
misstep, like we talked aboutthat earlier.
That money cannot touch you.
You have to have a qualifiedintermediary to handle the funds
(23:44):
because you can't touch it.
It has to go from one person tothe person selling the new land
you're's selling, the new landyou're buying or the new
property you're buying, and sothere's a lot of moving parts
which goes back to make sureyou're working with the
professional right.
I think we've hammered that out, correct?
We talked a little bit aboutyou know, like grandma, having
(24:08):
to go to the nursing home.
Tell me just what is thedifference between selling
inherited land versus landyou've owned for a long time?
Speaker 2 (24:22):
Well, regardless if you inherit property, you buy
the property.
It's imperative that you firstunderstand your basis.
Your basis is quote unquotewhat you paid for the land and
your basis would include any.
Is quote unquote what you paidfor the land and your basis
would include any improvementsmade to the property.
And then sometimes, in the caseof it coming through an estate,
your basis may be a stepped upbasis and that is essentially
(24:44):
what was the value of theproperty at the day you
inherited, ie the decedentpassed.
So in theory, if it's properlyset up, you could get a stepped
up basis if it comes eitherthrough a traditional estate or
through a trust agreement, aslong as it is a revocable trust.
(25:05):
It's my understanding thatnon-revocable trusts do not get
a stepped up basis, butrevocable trusts get a stepped
up basis.
So what that entails is, as thedate of death of the decedent,
your basis is the value of thatland and the IRS states that it
does need to be a qualifiedindependent appraiser that
(25:25):
determines that value.
It cannot be a broker's opinion, it cannot be a broker's
listing amount.
It's basically you need to havethat appraisal to establish
your basis and it doesn't meanthat you need to do it
immediately because you can do aretrospective appraisal and
that's still as good as anappraisal done that day.
Granted, it's easier to do anappraisal real time as opposed
(25:46):
to retrospectively, but it'simportant to understand because
that, at the end of the day, isyour basis retrospectively.
But it's important tounderstand because that, at the
end of the day, is your basisand that's what you compare to
the sales price to determineyour capital gains or losses for
said property.
The other important part is todifferentiate between capital
gains in their short term, whichare taxed at your ordinary
(26:07):
income rate, and then there'slong term, which means you held
the property for one year ormore, and then those are taxed
at a much more favorable rate,at least at the federal level.
Each state is different as faras applicability for tax rates,
but the federal tax rates aremuch lower for assets held
longer than a year.
Speaker 1 (26:29):
Yeah, that's very good information.
If you don't mind mind, let'stake a break, and uh, we will be
right back land isn't just dirt.
Speaker 4 (26:41):
It's where memories are made, families are raised
and livelihoods are built.
But when it comes time to sellor buy, the weight of the
decision is heavy.
Where do you even start?
Who can you trust to guide you?
(27:03):
For too long, land transactionshave been treated like a simple
exchange Numbers on a paper, asignature on a line.
But it's more than that.
At High Point Land Company, wedon't just list land, we walk it
.
We learn its story and we findthe right buyer who understands
its worth.
You are not just another deal.
(27:27):
You are the steward ofsomething bigger and we're here
to help you navigate every stepdeal.
You are the steward ofsomething bigger and we're here
to help you navigate every stepof the way.
When it's time to sell, whenit's time to buy.
We're here because land is morethan just land.
(27:51):
It's your legacy.
Speaker 1 (28:05):
All right, we're back here with Troy Stafford from
High Point Land Company.
What a great company, Troy, youknow I got to say joined the
last year it's been.
I still am looking forward tolearning everybody, like meeting
everybody and getting to knowthem more, just because the way
we're spread out it's reallytough.
So we've got that trainingcoming up in May and I'm super
(28:28):
looking forward to just gettingto know people a little bit
better.
But what's your?
You've been with them for quitea while.
What's your experience?
You've got all good, fuzzythings to say about them.
No bad right.
Speaker 2 (28:40):
Yeah, it's really a great place to work.
I wish I would have found it orconsidered it some 20 years ago
, when I was earlier in mycareer, but, like I said earlier
in our podcast, you know, it isa very comprehensive growth
orientated firm that allows usto draw on a variety of
expertises across across all ofour specialties and we all bring
(29:00):
value to the table, butcollectively we add the most
value to each and every one ofour clients.
Speaker 1 (29:06):
Right, and it's just.
It's great to just have.
You can call anybody and theywill take the time.
That was one thing I found,even just in her.
Hey, my name is Kobe, I've gota problem or I got a question.
Somebody said you know aboutthis.
So, yeah, it's just been agreat experience for me and,
after having kind of a roughyear or so trying to find myself
(29:27):
and make things, figure thingsout, so it's been a great deal
myself and make things figurethings out, so it's been a great
deal.
So I always think when we'regoing through some of this stuff
, that we come at it from such ahigh level that a lot of times
we lose people.
So, if you don't mind, let's goback to like just basis.
Right, you were talking aboutthe basis and then a stepped up
(29:48):
basis.
Can you just kind of bring thatback down to a level of, maybe,
where people don't have anyidea what we're talking about
and just kind of explain whatexactly is that?
Speaker 2 (29:58):
All right.
Well, speaking in layman'sterms, basis is referring to
what you paid for a property.
So if you bought the property,say, for $100,000, you put
$50,000 worth of improvementsinto it, your basis or your cost
would be $150,000.
When you go to sell thatproperty you compare your basis
(30:21):
to whatever the sales proceedswere.
So if you go to sell it for$200,000 and your basis is
$150,000 by virtue of what youpaid and put into it, you have a
gain there of $50,000.
So I think one of the confusingparts is when we talk about
stepped up basis for inheritedproperty.
(30:42):
When you inherit a property,clearly you probably didn't pay
anything for it.
So the IRS allows you, based onthe decedent's date of death,
to determine your basis based onan appraisal.
So in essence, even though youdidn't pay for the property,
that appraisal amount determineswhat your basis is.
(31:04):
So it's just as if that persondied that day.
You took whatever the value was.
You took that out of your ownpocket, put that into the land.
That's in essence what you paidfor it.
So you take that amount, add toit any improvements you might
have and that's your adjustedbasis to determine your gain or
loss.
So even though you didn't inessence pay for it.
(31:26):
You did by virtue of thestepped up basis through the
appraisal Sure.
Speaker 1 (31:33):
Does that make sense?
Yeah, that was one of thebetter ways I've heard that
explained.
I think I might even understandit now.
Speaker 2 (31:41):
So, it's just like you bought the property with
that money even though no cashtraded hands.
Speaker 1 (31:48):
Perfect, that makes total sense to me.
Hands perfect, nope, that makestotal sense to me.
Um.
So, along with some other stuffto maybe clear up, is um it, if
I, if I sell my farm, um, do Ihave to go buy another farm on a
like kind exchange troy?
Speaker 2 (32:04):
no, like kind exchange is kind of a
nomenclature that'scounterintuitive.
So if you sell row crop, thatdoesn't mean you necessarily
need to buy row crop, it meansyou need to buy another income
producing assets.
So we see it happen all thetime where somebody has an
apartment complex and they wantto do a late kind of exchange
(32:26):
into row crop land.
That is perfectly permissibleunder the regulations.
What the IRS says it has to beheld for income producing and it
can't be speculative.
So you can't say, well, I'mgoing to buy this 40 acres on
the fringe of town, that's notincome producing, hoping that
the value increases and turnaround and flip it.
(32:48):
It has to be income producing.
That's probably the underlyingpart of it that makes it a
like-kind exchange.
You're replacing one incomeproducing property for another
income producing property.
Speaker 1 (33:01):
If I had a speculative property in one
place and I sold that to buyanother speculative property, is
that a like-kind?
Speaker 2 (33:10):
It would be a hard.
That would be a tough stretchIf neither one were income
producing.
That would be a tough stretch,as if neither one were income
producing.
Speaker 1 (33:16):
that would be very tough.
Yeah, yeah, so it's kind of.
It's the.
The 1031 exchange is very muchfor um producers or investors to
use, a tool where they can um,um, like, change properties Is
that, is that fair tool wherethey can change properties.
Speaker 2 (33:36):
Is that fair, where they can exchange
income-producing properties,especially when their basis is
low and they're faced withsubstantial capital gains?
Yes, Perfect.
Speaker 1 (33:51):
What else can you think of about an exchange that
we didn't discuss?
Speaker 2 (33:56):
I just think it's imperative to be kind of
cognizant of some of theoverriding rules.
You know, from the day yourelinquish your property you
have 45 days to identify threereplacement properties.
You know you can do four ifit's 200% or less of the value.
But that gets to be reallymuddy.
But it's imperative that youidentify those three properties
(34:19):
and then that identification isheld A with the intermediary or
with the attorney that's workingwith you on the transaction and
then from that time, the day ofclose, you have 180 days to
close on one of three saidproperties.
So once you identify those three, you are locked into one of
those three properties and let'sjust say everything goes south
(34:42):
and you can't end up buying oneof those three properties.
So basically you're not doingan exchange and then you're
facing the tax liabilityassociated with that.
So it's not the end of theworld.
You just got to pay the taxpiper their fair share.
So you're precluded from doingan exchange.
The other thing is, when you'redoing your sales transaction,
(35:05):
that is, exchange property, themore fluid you can be with that
closing date so you can workaround those 45 and 180 days,
the more you're going to haveflexibility in replacing it.
So if you have a buyer that canbe fluid and leave that closing
day or that window open say youknow, a six month window that's
(35:26):
going to give you a lot morelatitude in finding a
replacement property.
Speaker 1 (35:31):
Yeah, that's important to consider too is
that that's one of the reasonswhy you want to make sure on
your contract that it's denotedthat this is either a 1031
exchange or a possible 1031exchange, for not only the fact
that you have to have that needsto be on there and the language
(35:52):
needs to be right for theexchange, but also to let them
know that there may be somehiccups and delays too.
Speaker 2 (35:58):
Yeah, and you always want to incorporate that
language in your purchasecontract or sales contract, even
if you don't do an exchange.
It just gives you or reservesyou the right to do an exchange.
It doesn't require you to do anexchange.
So, at the end of the day, ifyou have that language and you
don't do an exchange, no harm,no fault, yeah.
Speaker 1 (36:14):
So at the end, of the day, if you have that language
and you don't do an exchange, noharm, no fault.
Yeah, and I have had clients inthe past that are like no, kobe
, I don't want that in there, Idon't want to muck anything up.
And then in the end it's likeoh, we found this other one.
Do you suppose they're going tobe all right with us doing an
addendum or an amendment tochange this to a 1031?
And a lot of times the sellersmay or you know they may be like
(36:35):
nope, are not interested inthat.
Speaker 2 (36:37):
Yeah, it's just better to have it in there from
the get-go and if you don'tutilize it like I said no harm.
Speaker 1 (36:42):
Yeah, tax day has a little bit of play into your 180
days, correct, if I rememberright.
I'm not a pro on it, but Ithink if it has to be done
before April 15th, correct.
Speaker 2 (36:56):
Yeah, that's only for exchanges that occur right at
year-end, so you've got to becognizant of that.
If it's outside of thatyear-end timeframe, then you
don't have to be as stringent.
But that is an important pointto know, and if you partner with
somebody who understands thetax regulations, they're going
to guide you properly, so youdon't have to worry about those
little nuances.
Speaker 1 (37:16):
Yes, I just wanted to make myself sound smart.
Speaker 2 (37:18):
You've been sounding extremely smart, you did a great
job.
Speaker 1 (37:21):
Yes, I just wanted to .
Hey, I threw some nugget ofknowledge out there that I knew,
Troy.
Speaker 2 (37:26):
Something I forgot to mention, but that was a very
good point that was the onlything.
Speaker 1 (37:30):
I think I caught the whole time time, though you
you've definitely nailed it.
So we're getting ready to closeup here.
What, what else do you thinkpeople should you know like
there's other ways to to whenyou're dealing with property,
there's other ways to helpmitigate taxes?
(37:53):
What, what other ways can youthink of?
That would be a good thing forpeople to maybe research when
they're thinking about sellingsome property.
Speaker 2 (38:01):
Well, there's certainly Delaware Statutory
Trusts.
They're pretty common.
It does give you some morelatitude and it allows you to
roll forward those gains intosubsequent years and you can
re-enroll them, is myunderstanding, into subsequent
years and you can re-enroll them, is my understanding.
There's deferred sales trust.
There's also creative paymentstructures.
Contract for deeds basicallygets you the same result.
(38:24):
You kick the can down the roadwhen you're in a lower tax
bracket, ideally, or you utilizethe lower capital gains rates
in the future.
So there's a number of taxplanning tools that aren't
necessarily as complex and thoseyou can explore with your tax
accountant, your attorney orsomebody who's experienced in
(38:45):
land sales that can guide you,like I said before, so you can
make an informed decision andyou're not making decisions in a
vacuum.
That's probably the mostimportant thing.
If I could get anybody to walkaway is to do your homework, get
a better understanding, becausethe more you know, the more
your situation is going to bebettered by your knowledge.
Speaker 1 (39:05):
You know that's really smart.
I mean, when you talk aboutland contracts, that's not
something, that's rare.
I mean that happens quite a bitwhen you're talking about farm
ground and things like that.
They might work out better fora down payment.
And then you know seven yearsof payments for the seller and
the buyer.
Speaker 2 (39:26):
Yeah, I mean it's a win-win in the sense, with
interest rates as high as theyare now, you're going to get
more for your money being in acontract for deed and they're
going to get a lower rate.
And number two you know youdon't necessarily need a big
downswing because there's notmuch they can do to the land
that's going to harm it ordevalue it.
Granted, if it was covered, youknow, with timber and they go
(39:46):
in and harvest it, that's awhole different scenario.
But row crop land, I mean,there's not a lot they can do to
harm the value, as said land,outside of depleting the soil
which, you know, with someinputs and fertilizer will bring
it back to normal.
So I don't get too concernedabout, you know, a big enough
downswing.
Speaker 1 (40:04):
As far as contractor deeds are concerned, Right and
contractor deeds should not bemisunderstood.
For rent to own correct Like acontractor deed is you're
transferring that property tothe buyer and then you hold a
contract on it like the bank.
Essentially correct.
Speaker 2 (40:22):
Yeah, in essence you don't sign over the deed until
the contract is paid in full.
So there's really no risk toyou.
And if they default on it, youget that set piece of land back.
And not only that, they forfeitall the payments they've made.
So it's really kind of awin-win.
In the event they get in aprecarious or you know, a
difficult financial position,you get the property back and
(40:45):
you get the payments that theymade and you get to retain them.
Speaker 1 (40:50):
It depends.
I've had a friend of mine fromWestern Nebraska that's gotten a
bar back about four times andhe really wouldn't like to not
have it back.
Speaker 2 (40:58):
I'm more headache with that.
With row crop land, it's prettysimple.
You collect two checks a yearand you write a couple checks
for property tax, and that'sabout it.
Yeah, farm grounds.
Speaker 1 (41:07):
Farm grounds are a lot easier to deal with than a
bar in Scotts Bluff, but anyway,absolutely Well in closing, in
closing, man did you have?
Speaker 2 (41:18):
anything else?
You could think of today or no.
I certainly appreciate yourtime and uh going through these
things and certainly if peoplewant to reach out um get some
more information, I'd be morethan happy to consult or
recommend somebody on that samevein, as far as a professional
they can talk to.
Speaker 1 (41:39):
Yeah, and so how do folks get a hold of you, troy,
if they have some questions, orwhat's the best?
Speaker 2 (41:42):
way to get you.
I can be reached by virtue ofmy phone at 507-259-3047, or you
can email at troy athighpointlandcompanycom.
All one word, just as it soundsat highpointlandcompanycom.
All one word, just as it sounds, highpointlandcompanycom.
There's a number ofconsiderations for various state
implications and I can't speakto that.
(42:03):
But taxes at the federal levelare the same across all 50
states, so that's prettyconsistent.
So I try not to go too deep inthe weeds on taxes.
But you know, certainly get youto the right professional to
guide you at the end of the dayis important.
Speaker 1 (42:20):
I think that's you know.
That's at least half the battle.
Right is to hold your hand upand say I don't know and point
to the guy that does you know.
So I think that's more aboutwhat being a professional about
is than just the knowledge thatyou have.
Speaker 2 (42:38):
Sure, and we're all specialists in our own nature,
but you just don't know what youdon't know, and that's why you
got to seek out the informationand align with the right people
to guide you, to make sure, atthe end of the day, you're
compliant, because theserequirements are somewhat
complex and it's important thatyou stay within the boundaries
or confinements of theregulations.
Speaker 1 (42:57):
Absolutely Well, sir.
I appreciate your time todayand we will see you all down the
road.
Speaker 3 (43:05):
As we wrap up another episode of the American Land
Seller Podcast.
Thank you for joining us.
Visit wwwamericanlandsellercomand find us on one of your
favorite podcast platforms.
If you would be so kind and youenjoyed today's insights,
please like, subscribe, rate,follow and review us on whatever
app you are listening orwatching on.
(43:26):
Connect with us on social mediafor updates until next week.
Kobe wishes you success in yourland endeavors.
God bless you and have a greatweek.
Speaker 1 (43:36):
The American Land Seller is brought to you in part
by LandHubcom.
Are you in the market for theperfect piece of land?
Look no further than LandHubcom, your solution to the biggest
challenges facing land buyersand sellers.
Today.
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(43:59):
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Let us show you the way in theever-evolving world of land
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and beyond.
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