I hope you're hanging in there with me on this subject. It seems like there's a new development every day or so now.
Yesterday I posted on the fact that Congress is back in session and the Farm Bill is something that they will be working on putting together as soon as possible, given that the spring planting season will be upon us before long. Here's today's news:
On Monday (yesterday), there was a revision issued in relation to estimated revenues to be raised by the reclassification of like-kind status regarding subsidized farm land. The original estimate was an increase of $27 million over ten years. The revision that was issued yesterday increased that estimate to $281 million, more than ten times as much as the original estimate. That is bad news for the future of the subsection of the bill that relates to Section 1031. In English, what that all means is that in order to have the provision removed from the bill, the House and the Senate will have to come up with some other manner within the bill to compensate for that $281 million. That will necessitate either a tax increase of some sort or the reduction or elimination of a tax benefit that is contained somewhere else in the bill. Obviously, that will make removing the language changing the definition of like-kind even more difficult than it was before.
Even more reasons to call those senators and representatives... have you made your call yet?
Ken Tharp
Providing Qualified Intermediary services for Section 1031 tax deferred exchanges all over the United States. Headquartered in Iowa, our services are available in Missouri, Kansas, Nebraska, Colorado, North Dakota, South Dakota, Minnesota, Wisconsin, Illinois, and all other states.
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Copyright © 2008 By Ken Tharp, All Rights Reserved. * The Next Verse... Today's Update on the Farm Bill * Contact Ken Tharp for information on Section 1031 tax-deferred exchanges anywhere in the United States.
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I can only wish that people could be more proactive about contacting their representatives in regards to matters of this sort.
It's sad that I have heard absolutely nothing about this in the media, but I have seen Britney Spears more than 5 times in the last month...
TaxMan - You must lead a sheltered life if you've only heard about Britney five times in the last month! Just kidding, I know exactly what you mean. By the way, thanks for your comment and for the feature!
The other incredible thing that was in the Senate's version of the bill until the last couple of days was the elimination of the ability to exchange collectibles. Now frankly, I haven't had the opportunity to exchange too many Picasso's, but what in the world was that doing in the Farm Bill?
Ken Tharp, Iowa Equity Exchange
Ken, I'm relying on you to keep me up to date on this issue. It doesn't affect me directly but I am concerned.
Bill Roberts
Ken,
Doesn't it make you happy that we can continue to exchange all of our collectibles now? It isn't that I am not happy for those collecters exchanging art, wine, coins and such, but it seems that seems to pale in comparison to our subsidized land! Let's keep our hope up!
Bill - Will do. We're getting frequent updates from our association, the Federation of Exchange Accommodators, on this matter. You have reason to be concerned, in my opinion.
Matt - It's clear they're acting in the best interests of the little guy, isn't it? (Tongue-in-cheek.) Let the people who manage to accumulate fortunes in artwork, etc., exchange them for greater fortunes, but the farmer who has toiled his whole life and simply hopes to retire with some residual income from his life's work, HELL NO!!
Oops, I got carried away there...
Ken Tharp, Iowa Equity Exchange
For some reason Ken I forgot to comment on this post when I read it the other day. Just checking back for further updates. Thanks for keeping track of it for us.
No problem, Jason... every time something changes, I'll let you know. Things are probably going to keep popping on this pretty fast, I'd guess.
Thanks Ken, your monitoring is great. Keep us informed.
Larry - Will do! Hey, did you get my email last week? Let me know if not; I'll resend it.
Ken