My wife and I are selling our 36 acre farm with our personal residence as part of the farm. We are going to split out the personal residence and take the $500,000 exemption for that part of the sale. The amount for the farm land has to be exchanged via 1031 or pay the capital gains because I have farmed it for several years. MY question is…should I form an LLC and transfer the farm into the LLC, prior to the sale, so that I can take business expense deductions when I do the 1031 exchange. I am looking at buying some rental properties (STR or long term) with the proceeds from the sale of the farm ground. I had someone mention this to me that I should look into the LLC but I am not sure what is the best way to go. Love the podcast and thanks in advance for any help you can provide.
Just answered your question on today’s show: 3/11. Will post in the next couple of days. Thank you so much for the question and following. Hopefully we can be of service in the future. Mark and Mat