Key Realty

Know the facts before you SELL....we can help!

Selling a Farm or Ranch: What You Need to Know

Selling the family farm or ranch can be a difficult and emotional decision. It is also one that can trigger complex tax and income issues. Accordingly, proper planning for life after the sale should begin long before the place is listed.

Many factors can affect your tax bill and, therefore, your financial state after the sale. Some of the most common are:

Whether you complete a 1031 exchange
How your farm or ranch is owned (i.e., individually, partnership, LLC, S Corp, C Corp, etc.)
Whether the sale includes a home
Whether your ranch consists of multiple separately deeded parcels with different cost bases
Charitable giving
How and where to invest the sale proceeds
Whether you and your family receive maximum value for your years of hard work may be determined by if and how you plan for the sale. This article will discuss some of the most common issues and opportunities when selling a farm or ranch.