Discussion:Exchange for a power plant
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Current revision Taxea (Talk | contribs) (Is this a workin) |
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| {{ForumNewPost|UserID=TAXLADY1981|Date=5 June 2009|Text=I have a client who owns 35 acres of land. He has owned it for 14 years with a farm on it. For the last 8 years he has been building a home there. In March 09 he moved in the home and filed for homestead exemption. A company is offering to buy his land for a new power plant. They want to purchase another 35 acres for him, build him another homoe and barn, and give him $200,000 cash. I know part of this is a like kind exchange, but how much and how do I break it down with the personal residence. He does not qualify for the home exclusion because the home has not been his main home the last 2 years. I am lost!}} | {{ForumNewPost|UserID=TAXLADY1981|Date=5 June 2009|Text=I have a client who owns 35 acres of land. He has owned it for 14 years with a farm on it. For the last 8 years he has been building a home there. In March 09 he moved in the home and filed for homestead exemption. A company is offering to buy his land for a new power plant. They want to purchase another 35 acres for him, build him another homoe and barn, and give him $200,000 cash. I know part of this is a like kind exchange, but how much and how do I break it down with the personal residence. He does not qualify for the home exclusion because the home has not been his main home the last 2 years. I am lost!}} | ||
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| + | {{ForumReplyPost|UserID=Taxea|Date=8 June 2009|Text=Is this a working farm that your client is getting income from? Is the land ag land? How much of the land does his assessor's office allow for a personal residence? Is the acreage they are purching for him in the same area and also ag land? Are the 35 acres each of equal value? | ||
| + | You would have income producing property for income producing property and depending on the other details of the land may be able to take the entire acreage for this purpose, plus the $200,000 as boot or you would have to allocate the personal portion of the property as separate of the 1031.}} | ||
Current revision
Discussion Forum Index --> Advanced Tax Questions --> Exchange for a power plant
Discussion Forum Index --> Tax Questions --> Exchange for a power plant
TAXLADY1981 (talk|edits) said: | 5 June 2009 |
| I have a client who owns 35 acres of land. He has owned it for 14 years with a farm on it. For the last 8 years he has been building a home there. In March 09 he moved in the home and filed for homestead exemption. A company is offering to buy his land for a new power plant. They want to purchase another 35 acres for him, build him another homoe and barn, and give him $200,000 cash. I know part of this is a like kind exchange, but how much and how do I break it down with the personal residence. He does not qualify for the home exclusion because the home has not been his main home the last 2 years. I am lost! | |
| 8 June 2009 | |
| Is this a working farm that your client is getting income from? Is the land ag land? How much of the land does his assessor's office allow for a personal residence? Is the acreage they are purching for him in the same area and also ag land? Are the 35 acres each of equal value?
You would have income producing property for income producing property and depending on the other details of the land may be able to take the entire acreage for this purpose, plus the $200,000 as boot or you would have to allocate the personal portion of the property as separate of the 1031. | |
