CPA Dave here. First...listen to John T. You need a good attorney and there are those who specialize in this. Then a good CPA...not just a "tax preparer". Don't feel bad for your folks, there are ways to structure this that keeps them in control.
The way we have done this in the past is to put the farm into a limited partnership. Parents are set up as general partners with 100% control but only 2% interest...1% each. They are also set up with 98% limited partnership interest. Over the next several years they "gift" you portions of their limited partnership interest each year using the maximum allowed without paying gift tax. Once the partnership is all set up by the attorney, it is generally turned over to me to administer. At year end I have an appraiser give me a value on the farm. We do this every other year and have the appraiser give two letters, one dated 12/31 and the other 1/01. I confirm value and have the attorney do gift letters for the correct % of ownership to transfer. The rest is handled on the tax return. Some folks have abused this in the past "discounting" the property so it is best to make sure it is done formally with appropriate experts and paper trail...in case the IRS questions the valuation. In the end, you and bro own 98% of the place but have absolutely no control. Folks own 1% each and control everything. You each get the last little bit in the will/trust. So don't feel bad because it will make the folks feel REAL good. They worked hard and they want YOU to have it without a lot of tax implications.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - Upgrading an Oliver Super 55 Electrical System - by Dennis Hawkins. My old Oliver Super 55 has been just sitting and rusting for several years now. I really hate to see a good tractor being treated that way, but not being able to start it without a 30 minute point filing ritual every time contributed to its demise. If it would just start when I turn the key, then I would use it more often. In addition to a bad case of old age, most of the tractor's original electrical system was simply too unreliable to keep. The main focus of this page is to show how I upgr
... [Read Article]
Latest Ad:
1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
