I am 70 and winding down my farming business so sons can take over. Recently I sold $500,000 of farm equipment. What's the best way to avoid a big tax bill? Can I somehow use a 1031 exchange and put the proceeds into land with some depreciable items?
I like your creative thinking, but unfortunately the Sec. 1031 exchange rules are too narrow to accomplish your objective of machinery into land. The like-kind definitions are fairly broad for trades of real estate into other realty. But with farm machinery, we literally need to be like-kind into other property ...