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Land Prices
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LawrenceWelk
Posted 5/30/2023 22:19 (#10250221 - in reply to #10250061)
Subject: RE: Land Prices


Strasburg, ND
Agr723 - 5/30/2023 08:46

It’s not undercapitalized land that forces the sale. It’s operating losses on the rest of the business along with principal payments on machinery and shops that were either 179’d or bonus depreciated so now there is no offset to the income taxes owed.

Edit to add: The above situation creates the scenario where you can’t afford to make the payment and you also can’t afford to liquidate the asset and pay the tax due, if you are lucky enough for it to be machinery causing the issue. If it’s a new $400,000 shop in the middle of you building site you are married to that boat anchor for the long term…


Better hire some mechanics and run a truck and tractor repair business in it! Get rid of the basketball court and indoor swimming pool. No more hosting baptisms, birthdays, graduations, and marriages in your "farm shop". Now the boat anchor is no longer an anchor, but a money maker. Probably only have to pay the mechanics $50 an hour and feed them dinner
Charge $100 an hour labor rate to your neighbors, or feed them for free at your parties. What a surplus of money you would have. Just think if you hosted parties and fed and watered the neighbors for free in the farm shop, that sounds expensive and non cashflow conducive!

Edited by LawrenceWelk 5/30/2023 22:20
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