Farm4Profit Podcast
1031 Exchanges and an Intro to Drones
Episode Summary
We learn about the advances in drone technology with the guys from Flying AG and how the best help a farmer boost profitability. We then chat with David Brown about 1031 exchanges. We learn how this tax/investment tool has help generations of farmers grow their legacy for the generations to come.
Episode Notes
Introduction
- Thank you again for suggesting topics for us to talk about on the podcast and keep them coming. Send those to farm4profitllc@gmail.com or find us all over social media.
- Commercial
- Outback Wrap— Outback Wrap hydraulic hose markers are designed to reduce the frustrations of hydraulic hose handling and identification. Outback Wrap won't fade or become brittle and break off like other tags or identifiers. The second product that we have added is the Hose Tamer. This is an 18” long 40mm diameter wrap that is designed to tame your wild hoses. It can hold up to 14 hoses and can easily be switched between equipment.
What’s Working in AG
- Flying Ag Drone Supply
- www.flyingag.com
- use code FARM4PROFIT for a free battery with your order - expires 2/1/2021
Main Topic
- 10-31 Exchanges
- When people own property. What 4 options do they have with that property?
- What are the benefits of Section 1031?
- Can anyone use a 1031 exchange?
- By using 1031 exchange, how could this affect my tax position?
- We learned in our conversation with the SPA that the Capital Gains tax rate is largely unchanged. This creates a substantial tax saving opportunity.
- Example?
- 1031 exchanges can be used for real property only, what does that mean?
- Can you exchange a farm for an apartment building or a lake house?
- Rental property, Farms, Office, Retail space, warehouse, mini storage, vacant land, golf course, vacation home, partial interests
- OK, so for farms, What all does that include?
- Livestock buildings, grain bins, tile, timber, pipelines, wind turbines, cell towers
- You have our attention. What does this process look like?
- QI, identification, acquisition, closing
- What are some examples of how you have seen 1031 exchanges work?
- What are some common mistakes you have seen to where this won’t work?
- Or what are pitfalls to avoid?
- Is there such a thing as a reverse 1031 exchange?
- How does section 1031 get sticky with related parties?
- What is a common trait or characteristic that you have seen among the most successful people you know?
- Anything else you’d like our listeners to know?
- Contact info
Summary
Challenge
Closing
Reminder to like, rate, and review. Send us your favorite episode from 2020 to help us wrap up the year!