1031 Exchanges for Agriculture & Land
Maximize the value of farm, ranch and land operations through tax deferral
A trusted resource for decades, Accruit is a full-service real estate qualified intermediary, staffed experts in the field focused on providing tailored 1031 tax deferral solutions with an emphasis on property exchanges related to all phases of agribusiness including mixed-use property, conservation easements, long-term leases, and more.
Nearly all land qualifies for 1031 exchange tax deferral. Agricultural land includes pastureland, cropland, woodland, as well as other land types. With a variety of factors contributing to the overall decrease in Agricultural land, as well as a transfer in ownership due to aging operators, it’s important to understand the tax deferral available with a 1031 exchange.
Mixed-Use Properties
Mixed-use properties are define as a portion of the property being business use, with the remainder of the property being personal use. Example of Mixed-use properties related to agriculture can often include any of the following combinations:
- Farm acreage that includes the primary residence
- Primary residence that includes structures related to a ranch operation
- Primary residence with a accessory dwelling unit (ADU) used for business operations
Improvements to Land
Improvements to land include structures that are permanently affixed to the land, as defined in the 2020 Treasury Regulations. Affixation is deemed permanent if given the relevant facts and circumstances it is reasonably expected to remain in place indefinitely and considerable costs would be incurred to remove such improvements. Exchange of qualifying improvements to land under IRC §1031 include:
- Center pivot irrigation systems
- Fencing and livestock handling facilities
- Wells, water lines & other water developments
- Shops & outbuildings including grain storage
Easements & Other Intangible Real Property
There are additional interests that are deemed real property and eligible for 1031 exchange treatment. Some of the most common of these intangible real property interests include:
- Perpetual Easements
- Rights to Water, Oil, Gas & Minerals
- Federal or State Grazing & Special Land Use Permits
- Long Term Leasehold Estates
- Land Development & Entitlement Rights
renowned 1031 specialists for tax deferred exchanges within the agricultural sector
A trusted resource within the Agricultural community for over three decades, Accruit’s team boasts expertise in complex 1031 exchanges, with an emphasis on property exchanges related to all phases of Agribusiness.
Max Hansen
Max was born and raised on a cattle and sheep ranch in Southwestern Montana and has been a legal advisor to countless Agricultural producers and landowners over the past 45+ years. He is a proud Gold Card member of the Professional Rodeo Cowboys Association and still swings a rope every chance he gets on ranches and in arenas across Montana, Idaho, and Northern Utah.
As a Managing Director at Accruit, a leading national 1031 Exchange Qualified Intermediary, Max utilizes his extensive knowledge of IRC Section 1031 and 45+ years of experience in the real estate and 1031 industry to help property owners defer tax through 1031 exchanges.
jonathan barge
Jonathan Barge specializes in complex 1031 Exchange transactions. He is well-versed in mixed-use properties, partnership issues, “drop and swap” transactions, carryback notes, IRC Section 121 and Section 1031 interplay, Rev Rul 99-5/99-6 transactions, recapture tax pitfalls, and finance structuring for large-scale construction exchanges. He also has specialized knowledge in the sale and exchange of easements, oil and gas interests, and other qualifying intangible interests.
With over two decades of public service experience, including the U.S. Air Force and law enforcement, Jonathan is an active member of the State Bar of Montana and State Bar of Texas.
PROUDLY SUPPORTING AGRIBUSINESS
