Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
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The best thing you could do now is get the appraisal, and then get some sort of documentation on how much the market has fluctuated over the past three years
So, if the market has remained flat, then the appraisal value would be what it appraised for now.
If the market increased 2%, then I would subtract 2% from the appraisal and use that as the basis.
The sale occurs for tax purposes when the benefits and burdens of ownership pass from the seller to the buyer, even if this happens before formal closing.
So, if the buyer takes possession of the farm prior to the final settlement, when they took possession is when the sale is deemed to have occured, even if no funds have been transferred to the seller.
Thanks for your answers. Re the appraisal, are you saying it would be whatever value it is today plus or minus a rate it might have fluctuated? I am not sure who I would get this adjustment rate from since the farm is unique and comps are highly unlikely.
Yes, I would get the information from a realtor on property overall. Just how market values in general have fluctuated. This is not the ideal situation, but without an appraisal done three years ago it's the best you can do.
The land has value which would fluctuate about the same as other land in that area.
OK, thank you. The other answer regarding the sale date is quite clear and is certainly going to help me
I'm glad I could help
Is there anything else that I can assist you with today?
No, I think that will be it unless you know if a survey is required to effect the sale of the farm.
For tax purposes, it would not. I can only speak to tax scenarios, unfortunately
Ok , Thx. Have a nice day.
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