The Residential Real Estate Post-Crash Index-Moderated Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: John Vosilla who wrote (10106)	3/5/2011 1:05:25 PM
From: Lazarus	1 Recommendation Read Replies (1) of 119361

Farmland "tricky business" and the prices will fluctuate relative to the potential income. Its probably too early to say its in a bubble as much of its appreciation is likely due to smart money that took profits in real estate 2005 - 2007 and rotated it into land bargains. For folks who have the money to spend and need a tax shelter the 5 to 100+ acre can be attractive investment... has been for years. You got the guy with the car dealership who wants to have a vineyard so he buys 40 acres and builds a very nice home on 2 acres. Then he plants the other 38 and is now in the AG business. All his plants, stakes, irrigation, barns, tractors, etc become tax deductible. He may end up selling his grapes to Gallo at a loss but the entire build is a tax write to offset gains in another business. Ohhh -- and maybe he keeps enuf grapes to make his 400 gallons of wine per year for his family :) I really dont know much about tax law but my encounters with farmers have led me to believe that they have many tax incentives.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next