dad just txt me a map of one of the 20 acre lots they sold across the street split up into 16 more subdivision lots

now that 20 acre lot was just part of 300 that was split up. I can't imagine what's planed for the rest.

if I built on the hill where I planned I will be looking at a town like subdivision, taxes will keep going up, yet it could be a good customer base. for our products.but it did stop me from going and buying that new tractor after taking my 12 year old out for his birthday dinner. no since in dropping that much cash on a tractor now

but if I lot mine off and it cost 10 k to get it decided and planed I will still make 900% .

I know nothing about dividing land. it blows becus all my past 16 year plans are potentially in flames. but I may find something nice close to national forest and closer to work. could work out better. but that capital gains tax.

it's early yet and I'm just venting. I mean who wants to have a subdivision move in across the road from you.

A tough decision for sure. I would have a very hard time coping with selling my ranch. If I was totally getting boxed in with new devolvement and sell out and buy another someplace where there is no people.

Be a multi-millionaire ovah night not all bad either but where a person has blood sweet, and tears craved into the ground you owned would be a hard choice to make.

Know where you are coming from. The family farm I was raised on was sold off in less than a year after my brother passed by his kids. And the prices it brought means developers.

I sold the few acres I had that was separate from my house and reinvested it more rural land using a 1031 Exchange to avoid the capital gains tax. Rules for the 1031 Exchange are pretty strict but better than paying the tax to be wasted by the government. Also going to sell my house and relocate. Not going to set here and watch houses grow. No tax implications on the house sale. Just the commissions.

Some folks will buy acreage and sub divide off enough to pay for the whole thing, then sit on what's left. But, you're right the city will chase you down and catch up to you soon enough.

yes that is a hard choice

Do a 1031 and minimize taxes. How many acres would you sell with the house? Might be able to avoid taxes anyway.

I couldn't tolerate a subdivision across the road.

what I would sale would be bare land othere than the 1830s cabin. I didn't think a 1031 exchange worked on raw land?

Talk to someone who actually does it for a living, but it is my understanding that it can work on all kinds of real estate.

If you can make 900% you are upset at a capital gains tax that maxes out at 15%! You can also talk with your CPA about doing a 1031 which will delay the capital gains tax if you invest in like kind property which land and building would be. Why keep something that will sell well and it will look like something you won't like and you can move closer to work and in a more re,mote area. You can always bring your products back to the developed area.

Bryce

I sold vacant land and bought vacant land and used a 1031 Exchange. Real Estate - investment property is eligible. Talk to a CPA to make sure you do it correctly. And I will have a CPA do my taxes this year to insure they are done per the 1031 guidelines.

that was if I divide it and sold it off at lot prices myself. just guessing but figured that would probably cost 10k per acre and with a lot of speculation including guessing sale price if 30k per acre as I have Seen for building lots that would be about 900% .

holding it and as it continues to build up and more and more farms become subdivisions the land prices should only continue to climb. as it is since I bought the farm land prices have gone up 300% around me and that's without doing any work dividing it up. that's in 8 years. so if it continues to build how much more will it bring in another 8 10 or 15 years. It's paid for after all. so other than taxes it cost nothing to hold it.


there are many options but it seems like my long term plans to die on the farm likely won't happen. but that's life and plans change.


dad did send a follow up txt saying the zoning commission noted the watter company could not Handel the demand like the subdivision is currently laid out. to me that says they will end up wanting to Raise the water bills again to pay for it. they went up 60% this year already.

Sorry to make those statements and thoughts when not knowing much of the details. As you state you have several options available to you.

Bryce

Take your monies from the sale and reinvest in more land. Eliminate the capital gains tax . You do know it must be over 250,000 profit before you pay 1 dollar in tax. Invest in a other property except 249999 no tax

You are basing that on present history. When or if there is a correction in land prices your formula is trash. Do it if you think it’s worth uprooting your family. Only you can make that call

I'm a donkey, stubborn. I love my farm and will keep expanding my feedlot to keep houses away.

See what the local setback is for a feedlot and put it as close to the development as possible, they'll probably be forced to move the houses back.

Sold. Collected. Moved out. Never looked back.

there is a county road between. I don't know if that makes a difference.


and j if I did nothing and sold as is profit would be mutipal times that.


at this point I think it's start shopping for land and areas near Hoosier National Forest but close enough it would be a long but practical drive to work. I will get an idea off what things are available and selling for . maybe contact the local realtors and farm co-ops. maybe a correction happens or bad recession hits and people needing to sell will call. with good credit, good paying job and a few paid off pieces of land and a house more than enough financial backing to be able to hopefully pick up what I'm thinking we would want when and if it comes up


tell then holding only cost taxes. and you never know after dad's last txt about the water company not able to meet that demand and or if the economy crashes like I have been expecting it may be a decade before that subdivision fills up. And if the developers are maxing out credit now they may go bankrupt before the economy recovers. never know but if the opportunity opens up and price right maybe I will buy it but build rentals. at least then it's mine.

bottom line is I was tempted to buy the ground when it came up for sale knowing I could have sold a good chunk on the other end and keep what I wanted on this end free and clear or with some profit and I didn't. why I didn't want to bother geting over 2 million in credit approved or put up my never had a loan on it farm as collateral. those # are huge to me and like I said I know nothing about dividing ground or approvals ect . so once again I dropped the ball. yes I could have handled the payments but those would have really scared me. remember I'm more of a want to be debt free guy.

We’ve looked at selling as well, not subdivision, but just selling for a few reasons and taxes are the biggest reason we haven’t.

That's 250k for each you and your wife. 500k tax free. Only the excess is taxed. Put all the maintenance costs and any expense related to the property deducts from tax liability. 1031 tax exchange has very tight timelines for reinvesting. My dad had 45 days. That's not much time.

It sucks having your ranch get consumed by development. I know exactly how you feel.
Some people stick it out.
I went to Boise not that long ago and it is quite odd the landscape there. Fields forever, canals and water everywhere. In those fields are what you would expect. Real old farm houses, 1800's victorian's and also the later craftsman style and just typical old farm houses. But the odd part is the tracts of dense new development housing in the middle of these fields. It is bazaar. 1200 acres of farmland and 300 houses packed together in a square in the middle of these fields. The ugliest houses you ever saw. The builders didn't even stagger their siding, just 12' runs with a trim board slammed against them. There are housing tracts have consumed many of the old ranch houses to where the ranch house only has 15 acres or so and the city has completely consumed the ranch. I could tell this has all happened within the last 10-15 years.

Subdivision? take your money and get away from the city

Can likely get a bigger property. See a tax guy. Wont have to let ukraine have 15% of your money.