1031 Exchange Trends for 2016

From the 1031 Insider Newsletter, IPX Investment Property Exchange Services, Inc. January, 2016 FIRPTA – What the Change to FIRPTA Withholding Means for You Under current federal law, if a foreign person sells US real property, the buyer is obligated to withhold 10% of the gross sales price and remit this to the IRS. Pursuant to the Protecting Americans from Tax Hikes Act of 2015, however, which became law on December 18, 2015 (the “PATH Act”), the required 10% withholding will increase to 15% for all closings occurring on or after February 16, 2016. There is an exception to the …

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CRP Enrollment Deadline

The most current general enrollment for the Conservation Reserve Program began December 1, 2015. Enrollment will run thru February 26, 2016.  According to the  USDA, “as of September, 2015. 24.2 million acres were enrolled in CRP.  CRP is also protecting 170,000 stream miles with riparian forest and grass buffers, enough to go around the world 7 times.”  Check out the USDA’s Celebrating 30 Years of the Conservation Reserve Program.

It Is Not About Your Equity

by Peter Martin | AgWeb.com Like most farmers, the bulk of your net worth is likely in the equity of your ground. But you might have discovered a “land rich” net worth, even a sizeable one, doesn’t assure banks will approve a loan renewal. Generally speaking, ag lenders are cash-flow lenders. Like you, they don’t like low commodity prices. While your net worth is important to them, they’re far more interested in a positive cash flow that allows loan payments to be made as agreed. That’s not easy today. Many of you are struggling to pencil out a breakeven, let …

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