1031 Exchanges for Agriculture & Recreational Land
Maximize the value of farm, ranch and recreational land operations through tax deferral
A trusted resource for decades, Accruit is a full-service real estate qualified intermediary, staffed with 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 defined as a portion of the property being business use, with the remainder of the property being personal use. Examples 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) or office space 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, Esq., CES®
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.
Max Hansen | Managing Director
Western Region
MaxH@accruit.com
(406) 660-4206
Jonathan Barge, ESQ.
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.
Jonathan Barge | Managing Director
Western Region
JonathanB@accruit.com
(406) 660-4209
Bob Goodson
Based in Salt Lake City, Bob is a respected real estate professional with a strong focus on agribusiness and land-related transactions. He works closely with landowners, investors, and agricultural operators across the region, bringing a practical, boots-on-the-ground understanding of rural properties, farm and ranch operations, water rights, and the evolving dynamics of the Western land market.
Bob Goodson | Director, Business Development
Western Region
BobG@accruit.com
(385) 317-7998
Karen Clemans
Based in Bakersfield, California, Karen is a dedicated 1031 Exchange professional specializing in the agribusiness sector. With a strong understanding of the Central Valley’s agricultural landscape, she works closely with farmers, investors, and landowners to facilitate the purchase, sale, and management of agricultural properties. Her experience spans a variety of asset types, including dairy land, farmland, water rights, orchards, and ranches, giving her a well-rounded perspective on the unique needs of ag-focused clients.
Karen Clemans | Business Development Director
California Region
KarenC@accruit.com
(661) 310-1541
Todd Merritt
Based in Texas, with over 15 years as a licensed real estate broker, along with experience in rural property transactions, mineral rights, and co-founding a SaaS company serving the energy sector, Todd brings a well-rounded perspective to 1031 Exchanges and is passionate about helping agricultural clients make informed decisions that support both immediate goals and multi-generational success while remaining closely connected to the land and active in the ag community near Fort Worth.
Todd Merritt | Senior Account Executive
Texas Region
ToddM@accruit.com
(817) 210-6836
PROUDLY SUPPORTING AGRIBUSINESS
