The Role of a Closing Attorney in a Farmland Transaction
When it comes to buying or selling farmland in Iowa and across the Midwest, few steps are as critical as the closing process. While many people focus on price negotiations, financing, or land surveys, most overlook the crucial role of a closing attorney. Yet, this professional plays a vital part in ensuring the transaction is […]
What Is the Fence Law? Understanding Property Boundaries in the United States
When it comes to land ownership, fencing is one of the most important considerations for maintaining property boundaries and ensuring smooth relations with neighboring landowners. Fence laws differ across the U.S., so every landowner—farmer, rancher, or homeowner—should understand the rules in their state. Here’s a breakdown of what you need to know about fence laws […]
Eminent Domain: What Farmers Need to Know and How It Affects Their Land
Eminent domain allows the government to take private property for public use, but the law requires fair compensation. For farmers, this can be a major concern since farmland, in particular, is often targeted for projects such as highways, pipelines, or utilities. Understanding how eminent domain works, what rights you have as a landowner, and how […]
Do we need an appraisal on the farm?
Top 50 Questions about Farmland Whether or not you need an appraisal depends on your specific situation, such as selling, settling an estate, or determining tax basis. While an auction often serves as a live, real-time appraisal, there are instances where a formal or certified appraisal is necessary. When Do You Need an Appraisal? For […]
What is a tax basis?
Top 50 Questions about Farmland Tax basis is the starting value used to determine the gain or loss when you sell an asset, such as farmland. It plays a critical role in calculating taxes and can significantly impact your tax liability. How Tax Basis is Determined Initial Basis: If you purchased the farm, your basis […]
Can I sell my interest in the farm?
Top 50 Questions about Farmland Yes, you can sell your interest in a farm, but the process depends on several factors, including how the ownership is structured and whether the farm can be physically or legally divided. Here’s what you need to know. Key Considerations Before Selling Your Interest 1. Ownership Structure Tenants in Common: […]
Do you need an Attorney?
Top 50 Questions about Farmland Yes, utilizing an attorney is highly recommended when selling farmland. At Whitaker Marketing Group, we work closely with attorneys to ensure smooth and efficient closings while addressing the unique complexities of farmland transactions. Why an Attorney is Important Addressing Legal Complexities: Encumbrances: Handling debts or liens on the property. Encroachments: […]
What are the time limits for 1031 tax exchange?
Top 50 Questions about Farmland A 1031 tax-deferred exchange lets you reinvest the proceeds from a property sale into another like-kind property while deferring capital gains taxes. To make the most of this strategy, you must follow the IRS timelines closely. When you understand these deadlines, you can plan ahead and keep your exchange on […]
How and when do you serve lease termination?
Top 50 Questions about Farmland In Iowa, lease termination is a critical step when planning to sell farmland that has a tenant farmer. Here’s what you need to know about the process and timeline. When to Serve Lease Termination Termination Deadline: Notice to terminate a farm lease must be served by September 1 of the […]
What is a 1031 tax exchange?
Top 50 Questions about Farmland A 1031 Tax-Deferred Exchange, named after IRS Code 1031, allows you to defer capital gains taxes when you sell a property and reinvest the proceeds into a “like-kind” property. This strategy is widely used for farmland sales to maximize reinvestment and minimize tax burdens. How Does a 1031 Exchange Work? […]
