Article excerpts:

“As many farmers know, there isn’t always a next generation to pass the farm down to.

Your kids may live out of state, happily pursuing careers as doctors, lawyers and professors. They have fond memories from their childhood on the farm fondly but won’t be taking over ownership, and you’re ready to slow down and retire. So, you collectively decide selling the farm is the best option for everyone.

The problem here is that in most cases, the sale will generate a significant amount of capital gains tax, which is where Farmers First Trust can help. The company’s principal, Mike Gustafson, recently joined the Top Producer podcast with Farm CPA Paul Neiffer to explain the process.

“What we tell the farm family is to go ahead and get a farm sale in place, but what you need to have in the purchase contract is an approval that a Section 453 transaction can be done at the request of the buyer and seller,” Gustafson says.”

Link to article: https://www.agweb.com/news/business/taxes-and-finance/one-companys-unique-way-defer-capital-gains-tax