Iowa's Auctioneer Jason Smith

Illinois Land Auction - White County 180 Acres July 11, 2009

Mon, 06 Jul 2009 23:35:42 -0500

Don't miss this opportunity in southern Illinois to own a piece of prime whitetail habitat! A proven trophy property with great deer and excellent income. Look at the possibilities on this one.

Southern Illinois Land Auction White County Illinois 180 Acres m/l

Saturday, July 11th, 2009 at 10:00 AM CDT
VFW Building - 406 E. Main Street, Carmi, IL 62861

180.5 Acres M/L in White County, IL

Southern Illionis Land Auction Click for DETAILS

This auction is brought to you by

Jason Smith
Auctioneer, Land Specialist

Mobile:

1 (712) 592-8965

Office:

1 (217) 285-9000

3 Easy Ways To Participate
There are many ways to participate in this auction and there is still plenty of time left.

Attend the live auction at the VFW building in Carmi Illinois
Bid live online at the same time the auction is occurring. Go to www.NaaLive.com and register for the auction at least 48 hours ahead of time
You can place absentee bids prior to the auction by calling Jason Smith at (712)-592-8965

PRE-REGISTER:
If you wish to pre-register for the auction so your number is waiting for you, call Jason Smith (712)-592-8965.

PROPERTY PREVIEW TOUR:
To preview the property or get additional information contact Mark Doerner at (270)724-0210.

Saturday, July 25th, 2009

190 Acres M/L
Monroe County, IA

Saturday, July 18th, 2009

33.7 Acres M/L
Harrison County, IA

Saturday, August 1st, 2009

271 Acres M/L
Appanoose County, IA

Southern Iowa Land Auction Selling ABSOLUTE - No Reserve Monroe County Iowa 190 Acres

Mon, 06 Jul 2009 23:09:23 -0500

This 190 acres is situated in prime southern Iowa deer country near Albia Iowa. This really is one of those hard to find farms with excellent hunting and a home with all utilities. Lots of big oak ridges transition down into winding creek bottoms creating ideal habitat for turkey and deer.

This farm will be selling absolute, regardless of price or bids, there is no reserve.

Saturday, July 25th, 2009 at 10:00 AM CDT
100 Highway 34, Albia, IA 52531

Southern Iowa Land Auction Click for details on this sale.

This auction is brought to you by

Jason Smith
Auctioneer, Land Specialist

Mobile:

1 (712) 592-8965

Office:

1 (217) 285-9000

Saturday, July 11th, 2009

180.5 Acres M/L
White County, IL

Saturday, July 18th, 2009

33.7 Acres M/L
Harrison County, IA

Saturday, August 1st, 2009

271 Acres M/L
Appanoose County, IA

Illinois Land Auction White County 160 Acres m/l Farmland and Hunting Land

Tue, 16 Jun 2009 16:27:10 -0500

Don't miss this opportunity in southern Illinois to own a piece of prime whitetail habitat! A proven trophy property with great deer and excellent income. Look at the possibilities on this one.

Live On-Site Auction with Online Bidding - click here to signup to bid.

Saturday, July 11th, 2009 at 10:00 AM CDT
506 E. Main Street, Carmi, IL 62861

This auction is brought to you by

Jason Smith
Auctioneer, Land Specialist

Mobile:

1 (712) 592-8965

Office:

1 (217) 285-9000

More Information ---> Illinois Land Auction White County 160 Acres m/l <--- More Information

White County, Illinois - 180.5 Acres more/less

So many options here! This farm will be offered in separate tracts and as a full farm at the sale.

Farm it and lease the hunting rights for additional income or buy it as your own hunting property and benefit from the tillable income. Southern Illinois is home to some of the best trophy whitetail hunting in the entire country. This tract is one of a kind. Four years ago, a 193 inch buck was taken off this property. This is a HIGH QUALITY farm with great recreational opportunity. Thick timber, water, excellent tillable and multiple plot options come together to create the perfect whitetail paradise. This place is loaded with shredded trees and worn deer trails to match. Look closely at this one. It's a great opportunity to own a piece of the dream.

45 minutes from Evansville, Indiana
2 hours from Saint Louis, Missouri
4 hours from Chicago, Illinois
3 1/2 hours from Nashville, Tennessee
7 hours from Atlanta, Georgia
CRP income ($1,728 per year); filter strips along crop field edges in prairie grasses.
Tillable ground income ($5,600 per year)
Paved road frontage on east side with county water available.
Excellent wooded and field building sites for that cabin or home you've always wanted.
Land owner has created a 60-acre sanctuary area that is loaded with cover, water and everything a deer needs to stay out of sight of humans.
Two small ponds for year around water source on property with a third pond on bordering land.
There was a 193" buck harvested in 2005 off this tract.
Owner is a trophy hunter and said he could have easily taken a 140" to 150" buck each season, but was only interested in taken 170"+ deer.
This property is high ground with absolutely no chance of flooding, which I know from experience as an owner of 400 acres in White County, is a big bonus.
If you are a turkey hunter as well, you'll love this property. Bordering property to the west has a large hayfield; perfect for nesting birds in the spring time.

Whitetail Trophy Properties Land Specialist Mark Doerner has been an outfitter and land owner in White County, Illinois for 8 years. Mark knows where the giant deer are year-in and year-out. He describes this property as "one of those magic spots". This property has everything it takes to grow and hold big whitetail; cover, water, food, genetics and great like-minded neighbors. Mark spent two full days exploring this tract and was impressed with the big buck sign. He was able to watch a 170"+ buck feeding in soybeans along with other big bucks. The trail camera and harvest photos tell the story on this property.

Visit our land auctions website for more information on this parcel or other that are available.

Iowa Land Auction - 33.7 Acres m/l Harrison County near Omaha Nebraska

Sat, 06 Jun 2009 14:33:18 -0500

Click here for more details

Iowa Land Auction - Harrison County 33 Acres m/l

LIVE PUBLIC AUCTION - SATURDAY JULY 18TH; 1939 HILLSIDE AVE. MONDAMIN, IA 51557

33 acres more or less (14 acres tillable, 14 acres timber, pond, and creek)
Property is located near Mondamin, IA; 28 miles Blair, NE; 40 miles from Omaha, NE; and 60 miles from Sioux City, IA
CRP just came out of program this year and could be tilled or planted to food plots
Abundant deer and turkey sign all over this property and in an area of superior deer hunting.
Exceptional building location, great view of the Loess Hills and close to Interstate 29 for easy access to Omaha
Pond and creek located on the property
Well maintained rock road with short drive to paved road
The interior of the timber is very thick, cedar choked hillside that provides excellent bedding and cover

AUCTIONEER: Jason Smith, Whitetail Properties Cell 712-592-8965

To find other Iowa Land Auctions visit us at www.WhitetailPropertisAuction.com

Comments:
AUCTION!!! SATURDAY JULY 18TH 2009, to be held at the City Park in Mondamin Iowa!! This small tract will be offered at live public auction July 18th and has it all to offer. This would make someone a great little hunting spot or an exceptional building site where you can enjoy the beauty of the Loess Hills and the rural country lifestyle. Build on the east side of the road and hunt on the west....it lays out perfect for it. Tillable acres for income or food plots, thick wooley timber for bedding cover, pond, and a stream. If you don't think you could fit that much into 33 acres take a look at the photos. It is not often you find a piece of land with this potential and all the amenities at auction. The tillable acres are approximately 14 and the timber is 14 acres as well. You can find information on www.whitetailpropertiesauction.com or click the AUCTIONS tab on the menu above.

Illinois Land Auction - Pike County Illinois 60 Acres m/l

Sun, 31 May 2009 13:23:38 -0500

Illinois Land Auction

Pike County Illinois 60 Acres m/l

For more information visit our Illinois Land Auctions page

AUCTION TO BE HELD JUNE 27TH 2009 AT 10 AM CST AT THE PIKE COUNTY FARM BUREAU BUILDING LOCATED AT 1301 E WASHINGTON ST, PITTSFIELD, IL 62363. CLICK ON THE AUCTION TAB ABOVE FOR MORE DETAILS

60 acres more or less ( 8 acres tillable, balance in timber, brush, creek) Entity Owned; Broker/Owner Interest
Located 10 miles S of Pittsfield, Illinois; 1 ½ hours W of Springfield, Illinois; 1 ½ hours N of St. Louis area; 4 hours SW of Chicago, Illinois
2 established food plots ( 7 acre ridge-top food plot)
Good interior access from logging road
Wide, flat rock-bottom creek snakes around northern border of property
Fabulous big buck opportunities
Several great stand locations on natural pinch points and funnels
Surrounded by hundreds of acres of big buck producing habitat
Large timbered tracts on three sides of property

Comments:
AUCTION!! JUNE 27TH 2009, 10 AM CST. AUCTION TO BE HELD AT PIKE COUNTY FARM BUREAU BUILDING 1031 E WASHINGTON ST PITTSFIELD, IL 62363.

Call Illinois Auctioneer Jason Smith for more details at 712-592-8965 or Broker/Agent Dan Perez at 217-285-9000.

ONE OF A KIND! This is a rare opportunity to buy in this area. Nestled in the core of Trophy Buck country in the golden triangle. Tillable acreage is currently being use as food plots but could also be used for tillable income. A variety of terrain changes make this property very unique. Just down the road from famous Heartland Lodge and the monster buck producing Rodhouse Rut N Strut trophy only area. This property is a big buck management dream come true.

Illinois LAND AUCTION - White County Illinois 180.5 Acres m/l

Sun, 31 May 2009 11:47:20 -0500

For details visit our website Illinois Land Auctions
AUCTION!! SATURDAY JULY 11TH 2009 10 AM CST CLICK ON THE AUCTION TAB ABOVE FOR MORE DETAILS
180.5 acres more or less (74 acres tillable, 16 acres CRP, balance in timber, brush, and 2 small ponds)
Property is located 45 minutes from Evansville, IN; 2 hours from St. Louis area; 4 hours from Chicago, IL; 3 1/2 hours from Nashville, TN; and 7 hours from Atlanta, GA
CRP made up of filter strips along tillable field edges in prairie grass; income $1728/year
Tillable income from 74 acres of $5600/year
Paved road frontage on east side with county water available.
Excellent wooded or open building sites for that cabin or home of your dreams.
Land owner has created a 60 acre sanctuary area that is loaded with cover, water, and everything a deer needs to stay out of sight of humans.
Two small ponds for year round water source, with a third on a neighboring landowner.
In 2005 a 193" buck was harvested off this property.
Landowner is a trophy hunter and has passed numerous 140 and 150 class bucks each year, looking to harvest deer in the 170 class or bigger
This property is high ground with absolutely no chance of flooding, and from personally owning 400 acres in White County is a big bonus.
Turkey hunters will love this property as well with large hayfields on the bordering property ideal for nesting birds in the spring.

***VISIT OUR WEBSITE ILLINOIS LAND AUCTION WHITE COUNTY ILLINOIS 180.5 Acres m/l ***

Comments:
Whitetail Trophy Properties Land Specialist Mark Doerner has been an outfitter & land owner in White County Illinois for 8 years. Mark knows where the giant deer are taken year in and year out and he describes this property as "one of those magic spots" This property has everything it takes to grow and hold big whitetail. Cover, water, food, genetics and great like minded neighbors. Mark spent two full days exploring this tract and was impressed with the big buck sign. He was able to watch a 170"+ buck feeding in soybeans along with other big bucks. The trail camera and harvest photos tell the entire story on this property.

Residential real estate auction revenue increase 5.3% despite housing market downturn

Sat, 23 Feb 2008 22:11:13 -0600

Residential real estate auction revenue increase 5.3% despite housing market downturn

Overland Park, KS - In 2007 the gross revenue from goods and services sold at live auction grew 5.3% to $270.7 billion. In 2006, the auction industry sold $257.2 billion in goods and services at auction, an increase of 7.1% from 2005. The annual report was compiled by Morpace, Inc. on behalf of the National Auctioneers Association (NAA) which surveys auction professionals to determine the state of the industry, as well as track key auction specialties within the industry.

While traditional real estate professionals continue to face the challenges of a housing market downturn, the real estate auction market continues to be one of the fastest growing auction sectors generating $58.4 billion in 2007. Within the real estate segment (i.e. residential, land/agricultural, commercial/industrial), residential real estate auctions witnessed the largest growth, increasing 5.3% from 2006. Accounting for 32% of the total live auction industry, automobile auctions continue to be the largest sector of the industry generating $87.8 billion in sales. Charity auction revenue grew from $15.6 billion in 2006, to $16.2 billion in 2007, an increase of 4.1%. The overall number of live auctions conducted in 2007 increased by 4.6%.

"The live auction industry continues to grow at an amazing pace," said NAA president Tommy Williams, CAI. "More and more consumers are realizing the benefits of buying and selling at live auction. Consumers are now buying or selling their homes, purchasing art and antiques, or raising capital for charitable causes through auctions."

To assist consumers interested in real estate auctions, the NAA launched the first real estate auction multiple listing service (MLS) in 2007. Prospective bidders from across the world can access http://www.auctionmls.com/ to view upcoming real estate auctions ranging from residential, to farm/agricultural real estate. In addition to launching the first auction MLS, the NAA partnered with the Auction Network to develop the first 24/7 multi-media network devoted to the auction industry. Everyone from the enthusiast to the casual bidder can participate real-time in a wide variety of auctions taking place worldwide by visiting http://www.auctionnetwork.com/.

** Article taken from the National Auctioneers Association 1/23/08 News Release ** About the NAAHeadquartered in Overland Park, Kansas, the National Auctioneers Association (NAA) represents the interests of approximately 6,000 auctioneers in the United States, Canada and across the world. Founded in 1949, the mission of the NAA is to promote the auction method of marketing and enhancing the professionalism of its members through education and technology. In 2007, the auction industry grew by 5.3% with over $270 billion in goods and services sold. To learn more about Auctioneers, auctions and the NAA visit: http://www.auctioneers.org/.

For information on real estate auctions in Iowa visit our Iowa Real Estate Auctioneer website to learn about auctions or to book your auction.

Iowa Deer Classic Auction 2009

Tue, 03 Mar 2009 13:57:38 -0600

Iowa Deer Classic Auction

New in 2009 the Iowa Deer Classic Auction. This will be the ULTIMATE sportsman's auction so don't miss your chance to bid on unique one of a kind items that are not available anywhere else. Click on the CATALOG link above to see the items we will be selling.

It just does not get any bigger than the Iowa Deer Classic when it comes to whitetails and hunting in Iowa. We will be selling items donated by outdoor celebrities to benefit the Iowa DNR's Mentored Outdoor Experience program. You'll find hunts and opportunities you won't be able to find anywhere else. We promise a few surprises will be on the auction block! There will be items that have never ever been sold before, and items you had no idea you could even purchase. This stands to be the sportsmans auction of all sportsmans auctions.

The proceeds from the auction will benefit the Iowa DNR's Mentored Outdoor Experience (MOE) Program at Springbrook. This program introduces youth and their mentor to deer hunting with the educational experience culminating in an actual deer hunt at Springbrook. I will be partnering with my good friend and fellow Auctioneer Cory Behr to help support the future generations of hunters in Iowa and ensure the continued success of this great program.

Come by the auction booth located near the Hall of Fame at the Iowa Deer Classic where all items will be on display during the show.

ABSENTEE BIDS WILL BE ACCEPTED! Call 712-592-8965 to place an absentee bid on any item. Credit card information will be required to place absentee bids.

This sale is in cooperation with the following entities

Whitetail Properties - Hunting land in Iowa, Missouri and Illinois

Whitetail Properties Land Auctions - Iowa Farmland Auctions

Behr Auction Company - Serving the Midwest for over 35 years

Iowa Department of Natural Resources

Iowa Deer Classic - Greatest Whiteail Show on Earth

Illinois Auctioneers | Missouri Auctioneers | Iowa Auctioneers | Kansas Auctioneers

Iowa Land Auction 150 Acres Fremont County Iowa September 21

Wed, 03 Sep 2008 09:43:31 -0500

This 150 acre property with pond will be offered at public land auction on September 21, 2008. This will be an onsite auction at the farm. From Thurman Iowa go east on County Road J24 to 250th Avenue. Go south on 250th to the location. Watch for signs that will be placed the day of the sale.

Additional information on this farmland auction in Iowa, along with terms and conditions can be found on my auction website at www.GoWithJason.com

Located in Southern Iowa this property could be what you want it to be. Views from the top of the property provide one of the best views in the Loess Hills where you might put a home. If you are interested in a hobby farm or Iowa hunting land at the right price this is just the place you are looking for. With plenty of space, pasture and water you'll do well here. This area is known for great whitetail hunting and this property lies perfectly between the large timber tracts to the west and agricultural fields to the east.

Pre-bids now being accepted at ProxiBid.

Click the logo for more information.

Type of Listing: Public Auction
Price: Land Auction
County: Fremont Iowa
Nearest Town: Thurman Iowa
Taxes: TBD
Property Type: Agriculture, Recreation, Hunting, Fishing, Horse Property, Pasture, Building Lot
Total Acres: 150m/l
Timber Acres: 5
Water Acres: 7

Listing Details:

Topography: Rugged, Rolling
Surface Water: Pond
Structures/Dwellings:
Description of structures: No structures on this property
Services Available: Propane

Property Description:

Description: Currently this property is leased for pasture generating $8500 per year income. A small portion of the property was tilled and planted to soybeans as well and tilling the land is possible.

Income:

Agriculture: Formerly row cropped, and only partially row cropped and pastured now.

Rent: $8500 for pasture rent

Hunting Leases: None
Biological Evaluation:

Biological Evaluation of Property: This property has a large pond stocked with bass, bluegill and catfish. Deer and turkey sign have also been observed on this farm. Neighboring properties contain large tracts of timber and agricultural fields which benefit this property.

Contact Information

Smith Auction Marketing Company

Iowa Auctioneer Jason Smith

402-250-1006

Listed by Whitetail Trophy Properties

108 N. Monroe Street

Pittsfield, IL 62363

1800-971-7042

Jason Smith is an Auctioneer and licensed real estate salesperson in Iowa.

The Best Iowa Auctioneers

Tue, 10 Jun 2008 16:58:58 -0500

The best Iowa Auctioneers, or at least those competing to be the best Iowa auctioneer this year will all come together on Tuesday, August 12, 2008 in Des Moines, Iowa to compete against each other in a bid calling championship. On February 2, 2008 in Des Moines, Iowa 30 contestants competed at the annual Iowa Auctioneers Association convention and the field was narrowed to 20 auctioneers that would move on to the state final.

Scott Stutzman - Mt. Ayr, IA
Leroy Hoffman - Titonka, IA
Steve Maynes - DeSoto, IA
Steve Gaul - Hawarden, IA
Jason Knapp - Cedar Rapids, IA
Jeffery Craun - Boone, IA
David Wendt - Des Moines, IA
Ben Hollesen - Sioux Rapids, IA
Emily Wears - Solon, IA
Jeremy Clay - Maryville, MO
Craig Hilpipre - Cedar Falls, IA
Gary A. Littrel - Bettendorf, IA
Chris Richard - Mt. Pleasant, IA
Larry Sears - Grinnell, IA
J.J. Wise - Manly, IA
Brent McCall - Onawa, IA
R.J. Brinkmeyer - Hubbard, IA
Randy Stabe - Merrill, IA
Chad Shepard - Waterloo, IA
Eron Prevo - Bloomfield, IA

The state final to determine this years best Iowa Auctioneer will be held at the Iowa State Fair. In reality it doesn't make them the best Iowa Auctioneer but the state champion bid caller for the year, who will then represent the Iowa Auctioneers Association at events and functions throughout the year. Those competing in the competition do put a great deal of work and practice into their bid calling and with the enthusiasm and dedication of an Olympic athlete they practice day and night. If you want to see something new at this years state fair I hope you'll come out and have a great time with us there.

My Website: Iowa Auctioneer and Iowa Land For Sale

Land Values in Iowa 2008 Survey

Tue, 16 Dec 2008 11:50:17 -0600

Today Mike Duffy at Iowa State University released the newest Iowa Land Values report This years report was especially anticipated due to today's current economic situation in the United States. Some worried land values would drop but as you can see they have remained strong throughout 2008. Coming in strong was western Iowa in this years report with the states strongest gains in farmland values. Monona County saw an increase of 19.9% and was the strongest in west central Iowa.

The following chart gives a picture of today's land values for the report that was issued based on data from November 2007 to November 2008.

A few interesting facts from this years report.

The 2008 state average for all grades of land was estimated to be $4,468 per acre.
The increase in the state value was $560 per acre from 2007.
The percentage increase was 14 percent from 2007.

Analysis by Crop Reporting District.

The highest land values were reported for Northwest Iowa, $5,395 per acre.
The lowest land values were estimated for South Central Iowa, $2,573 per acre.
The greatest percentage increase was in West Central Iowa, 19.6 percent.
The least percentage increase was in South Central Iowa, 10.7 percent.

Analysis by Counties.

The highest value was estimated for Scott county, $6,310 per acre.
The lowest value was in Decatur county, $2,002 per acre.
The greatest dollar increase was $891 in Sioux county.
The greatest percentage increase was 19.9 percent reported in Monona county Iowa.

Analysis by Quality of Land.

Low grade land in the state averaged $2,967 per acre and showed a 11.7 percent increase or $311 per acre.
Medium grade land averaged $4,195 per acre and showed a 14.4 percent increase or $528 per acre.
High grade land averaged $5,381 per acre and showed an increase of 14.8 percent or $695 per acre.

Investor Activity v. Farmers

The majority of farmland sales, 69 percent, were to existing farmers. Investors represented 24 percent of the sales. New farmers represented 3 percent of the sales and other purchasers were 4 percent of sales.
Sales to existing farmers by Crop Reporting Districts ranged from 83 percent in West Central to 55 percent in South Central and Southwest.
Sales to investors were highest in Southwest (38 percent). West Central reported the lowest investor activity (13 percent).

Western Iowa Auctioneer Land Auction Monona County Iowa

Sun, 08 Jun 2008 10:55:15 -0500

Western Iowa Land Auction

Yesterday I was able to attend the large land auction in Monona County in western Iowa conducted by Ed Spencer. The land up for auction in this case was a of some historical value and a well known local operation. The large 560 acre feedlot had originally been built by the Hanson family and was later purchased by the Johnson family. The land auction was held at Moorhead Iowa while the location of the land was near Turin Iowa.

With many local folks in attendance, many of them to see who would purchase the farm and what the land would be valued at by the end of the auction. Many stories were shared about the old farm and especially the number of head they used to run in the feed lots. Even today it would be considered a large operation.

Bidding on the land started around $1500 per acre. The farm was sold based on a taxable acres of 554.81 with all of the structures and infrastructure to go with the property. It was all set up and ready to recieve a new cattle operation that very day, in fact the buyer would be allowed to place cattle on the property after signing the purchase agreement after the sale. That was very generous of the sellers, and in addition the sellers were also throwing the 95 acres of corn crop in with the sale.

By the time bidding stopped the last bid was $2200 per acre for a sale price of $1,220,582 which was right where I thought it would land in the end.

If you are thinking of selling a farm or land in Iowa give us a call today to discuss it. We sell Iowa farms and land and they are in demand today. Visit our Iowa Farm and Land website for more information on farm and land auctions in Iowa. While you may be tempted to accept an offer from a neighbor for the ease of "not dealing with it" I'm sure you won't realize a higher price than with a live public auction. Auctioneers more than pay for themselves and can put more money in your pocket.

Smith Auction Marketing Now Offers Online Simultaneous Bidding

Sat, 06 Sep 2008 11:59:47 -0500

At Smith Auction Marketing our relentless pursuit to offer the best attended auctions, make the best use of technology and achieve top dollar for our clients we have completed our recent effort to take our Live Public Auctions online. Our Live Public Auctions will not be simultaneously broadcast online at the same time. Onsite and online bidders will compete for your property at the same time. This option allowsanybody in the world to bid at your auction, and since they have been prescreened and required to post a deposit before bidding you can feel secure in knowing the transaction will complete.

This online option also allows us the ability to accept prebids on your auction so you don't have the worry and concern all the way up to auction day what your property might bring. Prebids can not be viewed by the public but can be viewed by our staff. This will be a great indication of what the property will bring and perhaps if you reserve has been met prior to sale day.

If you are selling real estate in Iowa contact us about our auction services. Real estate auctions bring real buyers, right now with closing in 60 days. Only auctions can promise you an offer on the table in 30 days for market value. Our sales include Iowa farmland, recreational land, estates, machinery and farm sales now with the great ability to welcome online bidders to your sale. Visit our Iowa Auctioneering website or click on the Proxibid logo to see our upcoming auction with online bidding.

Section 1031 Exchanges - Tax-Deferred or Tax-Free?

Tue, 26 Aug 2008 15:47:47 -0500

Via Ken Tharp - Section 1031 Exchanges, Iowa/U.S.:

Did you know that after you use a Section 1031 exchange to acquire new property, you will face the same tax-related issues when you decide to sell that property? Is there any way around paying capital gain taxes when you sell your property? With the issuance of Rev. Proc. 2008-16 and some advance planning, there are now two answers to that question instead of one. The one answer we always used to have was, "Yes, there is a way, but you have to die to accomplish it." (When a property owner passes away, property owned passes to heirs at a stepped-up basis, i.e., the value of the property at the time of death. If the heir(s) sell for that value, there is no capital gain. Helpful for your heirs, but not too much that you can do with it.) That answer isn't one that most people want to hear. Now, however, there's a new, more acceptable answer in the affirmative.

Let's assume that Mr. and Mrs. Jones own a farm worth $800,000 that has a tax basis of $200,000. (Substitute "apartment building," "business location," or whatever fits your situation for "farm.") Further, let's assume that Mr. and Mrs. Jones do not live on this farm, so there is no personal residence exclusion available to shelter some of their $600,000 capital gain if they were to sell. They're not too thrilled with the prospects of being taxed on a $600,000 capital gain on this year's taxes, but they do want to sell. What to do? How about this:

Mr. and Mrs. Jones sell their farm as the relinquished property in a Section 1031 exchange.

As their replacement property in the exchange, they acquire two vacation houses, each worth $400,000 (House #1 and House #2)

Mr. and Mrs. Jones rent the two properties in accordance with the new IRS Revenue Procedure 2008-16, which sets clear requirements for vacation home property to qualify for a tax-deferred exchange.

After a period of time (at least two years to satisfy the requirements of Rev. Proc 2008-16), Mr. and Mrs. Jones sell their residence using the personal residence exclusion provisions of Section 121 of the Internal Revenue Code and move into House #1.

After occupying House #1 for a period of at least two years to establish it as their personal residence, Mr. and Mrs. Jones sell it using Section 121 to exclude their capital gain and move into House #2. (I think you can finish the steps yourself.)

Can we quantify the benefits of such a strategy? Mr. and Mrs. Jones exclude the original $600,000 of capital gains from taxation. In addition, they can shelter the appreciation of their vacation homes over the period of time they own them (to the extent of the $500,000 limit on each residence). This strategy results in three interrelated benefits:

The exiting of the business of owning the farm land (or apartment house, or whatever),

The exclusion of otherwise taxable capital gains, and

A potentially large addition to their liquid assets for retirement.

Is this legal? Darned straight it is.It may or may not be something that you or your client would ever want to actually implement, but perhaps it will help you better realize the tremendous benefits that Section 1031 of the Internal Revenue Code affords us all when we plan properly.

(We strongly urge you to consult your tax advisor to see how this exit strategy could apply in your situation.)

******

Please consider IOWA EQUITY EXCHANGE as your source for answers to your questions about Section 1031 like-kind tax-deferred exchanges. Contact us at your convenience for prompt, accurate information. Please think of us for your next exchange.

Ken Tharp

Providing Qualified Intermediary services for Section 1031 tax deferred exchanges all over the United States. Headquartered in Iowa, our services are available in Missouri, Kansas, Nebraska, Colorado, North Dakota, South Dakota, Minnesota, Wisconsin, Illinois, and all other states.

INTEGRITY. PRECISION. SECURITY.

Copyright © 2008 By Ken Tharp, All Rights Reserved. * Section 1031 Exchanges - Tax-Deferred or Tax-Free? * Contact Ken Tharp for information on Section 1031 tax-deferred exchanges anywhere in the United States.

The Farm Bill Does Not Alter the Definition of “Like-Kind” in Regards to Section 1031 Exchanges

Tue, 26 Aug 2008 15:41:13 -0500

Via Ken Tharp - Section 1031 Exchanges, Iowa/U.S.:

In order to clarify things in the mind of anyone who is uncertain about it, the farm bill that was passed by Congress does not include the language about like-kind status that those of us in the exchange industry were concerned about. The Senate version of the bill sought to redefine the term “like-kind” as it applies to agricultural ground. The crux of the change was to make land that generated any sort of subsidy from the government for its owner non-like-kind to any other real estate investment. The central objection to that provision, in my opinion, is that the government essentially imposed the subsidies on farmers over the years and it is not equitable to now make it so those same farmers could not exchange out of their long-term investments into something more manageable in their later years.

While this is good news indeed, investors and real property owners all across the country should remain vigilant with regard to potential changes in Section 1031. The mere idea that Congress took a shot at changing like-kind status as a means to raise additional funding for their other activities is cause for concern. Considering the possibility of chipping away at the provisions of Section 1031 is frightening.

Ken Tharp

Providing Qualified Intermediary services for Section 1031 tax deferred exchanges all over the United States. Headquartered in Iowa, our services are available in Missouri, Kansas, Nebraska, Colorado, North Dakota, South Dakota, Minnesota, Wisconsin, Illinois, and all other states.

INTEGRITY. PRECISION. SECURITY.

Copyright © 2008 By Ken Tharp, All Rights Reserved. * The Farm Bill Does Not Alter the Definition of “Like-Kind” in Regards to Section 1031 Exchanges *