Don Wagner

Tax Incentives for Selling Rural Land Before the End of the Year: Maximize Your Benefits  Written By: Don Wagner, Il Land Broker, LandGuys  As 2024 draws to a close, rural landowners have a unique opportunity to leverage various tax strategies to maximize their financial gains from a property sale. By timing the sale of rural land before the year’s end, sellers can capitalize on favorable tax rates and available deductions, significantly increasing the money they keep. Below are key tax incentives and strategies that landowners should consider to optimize their profits.  Capital Gains Tax Rates and Savings Selling rural land can generate substantial capital gains, which will be subject to long-term capital gains tax. According to the IRS, the 2024 rates are as follows:  0% if your taxable income is less than or equal to:  $44,625 for single and married filing separately  $89,250 for married filing jointly and qualifying surviving spouse  $59,750 for head of household  15% if your taxable income falls between:  More than $44,625 and up to $492,300 for single filers  More than $44,625 and up to $276,900 for married filing separately  More than $89,250 and up to $553,850 for married filing jointly and surviving spouse  More than $59,750 and up to $523,050 for head of household  20% if your taxable income exceeds the upper limits for the 15% bracket【source: IRS】.  For detailed information about capital gains taxes, refer to the IRS's Capital Gains and Losses documentation here.  Example:  If you purchased rural land for $300,000 and plan to sell it for $700,000 in 2024, your capital gain would be $400,000. If your taxable income falls within the 15% bracket, you would pay $60,000 in capital gains tax. This leaves you with $340,000. If you wait until 2025, potential tax law changes could result in higher rates, reducing your net profit.  1031 Like-Kind Exchange The 1031 exchange allows landowners to defer capital gains tax by reinvesting sale proceeds into another similar property. This strategy is useful for avoiding immediate tax liabilities while keeping your capital invested in real estate.  How it works:  You must reinvest the proceeds into another "like-kind" property within 180 days【source: IRS】.  For more details on 1031 exchanges, see the IRS's guidance on like-kind exchanges here.  Example:  If you sell your rural land for $700,000 and reinvest immediately, you defer the $60,000 capital gains tax, allowing you to keep all sale proceeds invested【source: IRS】.  Qualified Business Income (QBI) Deduction For those whose property is part of a farming operation, the QBI deduction allows up to 20% of qualified business income to be deducted under Section 199A. The IRS provides specific guidance on the Qualified Business Income Deduction here.  Example:  If you earn $200,000 in business income from farming, you could deduct $40,000. If you’re in the 22% tax bracket, this translates into $8,800 in tax savings.  Estate and Gift Tax Planning For 2024, the federal estate tax exemption is $13.61 million per individual and $27.22 million for married couples【source: IRS. The annual gift tax exclusion has increased to $18,000 per recipient【source: IRS. For more information, see the IRS's guidelines on the estate tax here and the gift tax here.  Example:  If you gift $18,000 of land to each of your three children before selling, and with an estate subject to a 40% estate tax, this could save you $21,600.  Conservation Easements for Tax Deductions A conservation easement allows landowners to donate or sell development rights to their land in exchange for significant tax deductions. You can deduct up to 50% of your adjusted gross income (AGI), and any unused deduction can be carried forward for up to 15 years【source: IRS. For details, refer to the IRS's Conservation Easements information here.  Example:  If your land's market value is $700,000 and its value drops to $400,000 after placing the easement, you could deduct $300,000, reducing your tax burden based on your income bracket.  Conclusion: How Much Money Can You Save?  Capital Gains Tax Savings: Deferring or locking in lower rates could save $60,000【source: IRS】.  QBI Deduction: You could save up to $8,800 if your land is part of a farming operation【source: IRS】.  Gift Tax Planning: Reducing your taxable estate could help avoid $21,600 in estate taxes on a $54,000 gift.  Selling rural land before the end of 2024 offers numerous tax benefits. Consult a tax advisor to help structure your sale and maximize these incentives. If you're interested in exploring your selling options, reach out to your local LandGuys agent for expert advice and personalized guidance.  Sources:  IRS, "Capital Gains and Losses," available at: https://www.irs.gov/taxtopics/tc409  IRS, "Like-Kind Exchanges Under Section 1031," available at: https://www.irs.gov/pub/irs-drop/rp-03-103.pdf  IRS, "Qualified Business Income Deduction (Section 199A)," available at: https://www.irs.gov/newsroom/qualified-business-income-deduction-faqs  IRS, "Estate Tax," available at: https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax  IRS, "Gift Tax," available at: https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes  IRS, "Conservation Easements," available at: https://www.irs.gov/charities-non-profits/conservation-easements  For those of you who want to see the math breakdown, here's how we calculated the numbers in our examples:  Capital Gains Example: Purchase Price: $300,000  Sale Price: $700,000  Capital Gain: $700,000 - $300,000 = $400,000  Capital Gains Tax at 15%: $400,000 × 15% = $60,000  After-Tax Profit: $400,000 - $60,000 = $340,000  Qualified Business Income (QBI) Deduction Example: Business Income: $200,000  QBI Deduction (20%): $200,000 × 20% = $40,000  Tax Savings at 22%: $40,000 × 22% = $8,800  Gift Tax Planning Example: Gift Amount per Child: $18,000  Number of Children: 3  Total Gift: $18,000 × 3 = $54,000  Estate Tax Savings (40%): $54,000 × 40% = $21,600  ** LandGuys and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.  PARTNER WITH DON WAGNER Don’s multifaceted background spans over 30 years as a professional photographer, during which he cultivated an intimate knowledge of trophy deer and acquired top-quality properties. His dual proficiency in capturing the essence of the land and optimizing its potential makes him an invaluable resource for clients seeking a comprehensive understanding of rural properties. Don is committed to providing clients with unparalleled insights and opportunities in the realm of rural properties. Whether you’re seeking advice on maximizing property potential or exploring profitable land investments, Don Wagner stands ready to guide you with passion, precision, and a shared commitment to excellence. Contact Don today to embark on your journey toward rural property success. Stay connected. Be sure to follow Don on Facebook.

Written By, Illinois Land Broker Don Wagner. MASTERING PROPERTY PRESENTATION In the dynamic world of real estate, first impressions are everything. As a dedicated real estate professional and visual storyteller with LandGuys, I understand this better than anyone. My mission is to ensure your property stands out and leaves a lasting impact on potential buyers. Unique Presentation With my brokerage, we present homes and properties in truly unique ways that make them look more appealing than anyone else could achieve. In today’s visually dominated market, the way you present your home or acreage is what really matters. Nationwide Exposure At LandGuys, we market on a nationwide platform, ensuring maximum exposure with unparalleled imagery. With three decades behind the lens and 15 years as a full-time real estate broker, my expertise in capturing properties with finesse has earned me recognition as one of the top global real estate videographers for two consecutive years. Media Presentation My team and I go above and beyond with our media presentations. We utilize the best times of day to capture footage and employ the latest technology in image quality. Weather can impact the final marketing materials, so we may need to reschedule due to wind or rain. It’s impossible to fly our drones in adverse conditions and achieve the quality footage we aim for. Property Preparation Before the professional photographer/videographer arrives, make sure your property is ready for photos and videos. Leave clear instructions on how you would like them to shut things down and lock up after the shoot. Transforming Listings In a landscape oversaturated with information, the need for more than a conventional property listing has never been more apparent. I get it. At LandGuys, we transform the act of listing into an art form, creating visually stunning narratives for each property that go beyond the ordinary. With features in numerous magazines and TV commercials, my work in photography and videography turns real estate listings into captivating tales of lifestyle and potential, resonating with the aspirations of potential buyers. Commitment to Excellence I’m passionate about what I do, and I’m committed to making your property shine. Let’s work together to create a compelling story that leaves a lasting impression. INTERIOR PREPARATION Objectively evaluate every room. De-clutter as much as possible – minimal decor gives the feeling of more space. Put away toys, clothing, dishes, towels, shoes, hide all trash cans, etc. Pack up all knick-knacks and figurines. Reduce the amount of wall art to one or two items per room. De-personalize the home – it helps buyers envision themselves there. Remove any seasonal/holiday decor that can quickly outdate your photos. If there are pets, hide all food/water bowls, pet beds, and pet toys. Rearrange furniture to maximize visual floor space. Remove any furniture that you can live without. Add lamps to any dark spaces to brighten the room. Prune and nurture all house plants. EXTERIOR PREPARATION Look at your house objectively from your neighbor’s yard. Replace any rotten wood on the exterior, if needed. Clean, repair, and paint front door, exterior, and trim, if needed. Sweep all walkways, patios, porches, and decks. Pressure wash any dirty/stained concrete. Re-stain deck wood, if needed. Wash windows, inside and out. Outdoor drapes, pillows, and throws create an inviting retreat. Open the umbrellas on any patio sets. When in season, uncover grills. Clean up after any animal. Put away all garbage cans, hoses, garden tools, toys, bikes, etc. In snowy climates, shovel snow from walkways, driveways, patios, decks when necessary. Consider adding splashes of bright-colored flowers to the landscape and in pots. GARAGE PREPARATION Clean and sweep out the garage. Keep storage nice and neat. Repaint dirty areas. Pack anything you can live without. CLEANING CHECKLIST Clean or replace as needed: light switch covers, oil door hinges, tighten doorknobs, fireplace, light bulbs, interior & exterior paint, AC/Heater vents. Leave your home smelling fresh and clean. Dust and vacuum everything: walls, blinds, ceilings, baseboards, windows, A/C intake vents, ceiling fans. PARTNER WITH DON WAGNER Don’s multifaceted background spans over 30 years as a professional photographer, during which he cultivated an intimate knowledge of trophy deer and acquired top-quality properties. His dual proficiency in capturing the essence of the land and optimizing its potential makes him an invaluable resource for clients seeking a comprehensive understanding of rural properties. Don is committed to providing clients with unparalleled insights and opportunities in the realm of rural properties. Whether you’re seeking advice on maximizing property potential or exploring profitable land investments, Don Wagner stands ready to guide you with passion, precision, and a shared commitment to excellence. Contact Don today to embark on your journey toward rural property success. Stay connected. Be sure to follow Don on Facebook.

Written By: Illinois LandGuys Broker, Don Wager. Cutting Edge Imagery, Next Level Results: Visual Real Estate Mastery. In the dynamic world of real estate, where the phrase “a picture is worth a thousand words” holds undeniable truth, I’m on a mission to stand out and leave a lasting impression on potential buyers with "Visual Real Estate Mastery". With three decades behind the lens and a solid 15-year run as a full-time real estate broker with LandGuys, my unique blend of expertise has earned me recognition as one of the top global real estate videographers for two consecutive years, a nod to my ability to showcase properties with finesse. In a landscape oversaturated with information, however, the need for more than a conventional property listing has never been more apparent. I get it. At LandGuys, we work to transform the act of a listing into an art form, weaving visually stunning narratives for each property that go beyond the ordinary. With features in numerous magazines and TV commercials under my belt, my work in photography and videography transforms real estate listings into captivating tales of lifestyle and potential, creating a narrative that resonates with the aspirations of potential buyers. The Art of Visual Storytelling Securing a top spot among global real estate videographers reflects a commitment to innovation and recognizing the strategic importance of high-quality media in our visually driven world. In a landscape oversaturated with information, the need for more than a conventional property listing has never been more apparent. At LandGuys, we understand this imperative deeply and actively work to transform the act of listing into an art form. In the competitive realm of real estate, visual storytelling stands as a cornerstone for effectively engaging potential buyers. It’s not just about showcasing properties; it’s about crafting narratives that transcend the ordinary. This approach acknowledges that a property is more than its physical attributes. It is an aspirational space waiting to be discovered. Our dedication to visual storytelling is evident in the features we’ve secured in numerous magazines and TV commercials. Through our work in photography and videography, we elevate real estate listings into captivating tales of lifestyle and potential. It’s not about mere transactions; it’s about creating a narrative that resonates with the aspirations of potential buyers. Visual storytelling goes beyond aesthetics; it is a powerful tool that evokes emotions and fosters a connection between properties and buyers. By curating visually stunning narratives, we aim to provide potential buyers with more than just information. We offer an immersive experience that helps them envision a life within a property. Transforming Your Property Together My involvement with your property doesn’t stop at capturing its essence. It’s about enhancement. Understanding the profound impact of a property’s presentation. I collaborate closely with clients to improve its visual appeal before filming. This collaborative effort isn’t just about aesthetic improvements; it’s about creating an immersive experience for potential buyers. Whether it's establishing inviting trails, strategic land clearing. Any measure that elevates the property from a listing to an aspirational experience, together, we'll make it happen. Covering Every Angle In an age dominated by technology, I ensure that my clients have access to the best tools available. My arsenal includes aerial 4K videos capturing the grandeur of expansive landscapes and underwater 4K videos showcasing the life within a lake. My commitment is to showcase each property’s unique charm through cutting-edge technology, recognizing that every property has its distinct story waiting to be told. By employing state-of-the-art technology, I bring out the nuances that make a property stand out, creating a visual feast for potential buyers. The old saying “you only get one opportunity to make a first impression” holds true. I live by this maxim. Understanding that the initial interaction sets the tone for the entire transaction, I ensure that the first impression isn’t merely good; it’s exceptional. Entrusting your property to me means seizing that singular opportunity with finesse and impact. My meticulous planning and execution ensure that your property makes a memorable entrance, leaving a lasting imprint on the minds of potential buyers. Maximizing the Potential of Your Land My belief in the timeless beauty of properties transcends the constraints of seasons. My lens captures the vibrant colors of autumn foliage, the blossoms of spring, and the pristine snow-covered landscapes of winter, showcasing your property's unique charm in every season. This approach ensures that your property looks its best throughout the year, attracting potential buyers with its year-round appeal. For properties with hunting land, I go beyond the ordinary. Utilizing trail cameras, I capture the wildlife that graces the property. I provide potential buyers with a genuine glimpse of the natural wonders that come with the land. I bring expertise in increasing a property’s income through detailed timber evaluation and leveraging CommonGround.io for higher rental rates on tillable land. This integrated approach isn’t just about capturing images; it’s about imparting valuable insights to property owners on maximizing the potential of their land. Adding My Personal Touch In my hands, your property isn’t just another listing. It’s a visual journey that captivates and resonates. My unparalleled experience in photography, videography, and real estate brokerage provides a unique blend of skills. This blend not only captures attention, but also holds it. In a market where first impressions are crucial, I ensure that your property’s introduction is not just remarkable; it’s extraordinary. Elevate your real estate experience with me, Don Wagner, and let’s create a story that speaks to potential buyers, leaving an indelible mark in the competitive landscape. My holistic approach doesn’t just sell properties; it crafts experiences that turn potential buyers into committed homeowners, making the real estate journey enjoyable for everyone involved. Let’s make your property shine! Get to Know Don Wagner Don’s multifaceted background spans over 30 years as a professional photographer, during which he cultivated an intimate knowledge of trophy deer and acquired top-quality properties. His dual proficiency in capturing the essence of the land and optimizing its potential makes him an invaluable resource for clients seeking a comprehensive understanding of rural properties. Don is committed to providing clients with unparalleled insights and opportunities in the realm of rural properties. Whether you’re seeking advice on maximizing property potential or exploring profitable land investments, the Don stands ready to guide you with passion, precision, and a shared commitment to excellence. Contact Don today to embark on your journey toward rural property success. To keep up with Don Wagner, be sure to follow him on Facebook, Instagram, and LinkedIn.