Free Wealth Management Guide Financial Strategies For Selling A Farm Or Ranch | Page 3
Straight Sale
TAX & ESTATE PLANNING ANALYSIS
Sale Price: $15,000,000
Land
Realized Gain
Total
$300,000
$15,000,000
0.67%
4.00%
2.00%
$1,200,000
$100,000
$700,000
0
$2,000,000
0
$100,000
$700,000
0
$800,000
0
0
0
$1,200,000
$12,800,000
$100,000
$600,000
$300,000
$13,800,000
$100,000
$600,000
0
$700,000
0
0
$300,000
$13,100,000
$12,800,000
Basis
Raised Livestock
$600,000
$12,800,000
Accumulated Depreciation
Equipment & Livestock
$100,000
$1,200,000
Original Cost
Building
$14,000,000
93.33%
Sales Price Allocation
$100,000
$600,000
$300,000
$13,800,000
$210,000
Recapture Gain
Capital Gain
Projected Tax
Federal
1245 Recapture Gain (35%)
0
0
$210,000
0
1250 Recapture Gain (25%)
0
$25,000
0
0
$25,000
$1,920,000
$1,920,000
0
$25,000
0
$210,000
$45,000
$45,000
$1,965,000
$2,200,000
0
$627,200
$627,200
$6,900
0
$6,900
$41,400
0
$41,400
0
$14,700
$14,700
$48,300
$641,900
$690,200
$2,547,200
$31,900
$251,400
$59,700
$2,890,200
Net Cash After Tax
$11,452,800
$68,100
$348,600
$240,300
$12,109,800
Effective Tax Rate
19.27%
Long Term Capital Gain (15%)
Total Federal Tax
State
Recapture Rate (6.9%)
Capital Gain (4.9%)
Total State Tax
Total Tax Liability
CASH FLOW
Projected Annual Income (Cash Investment)
$847,686
Total Annual Income
$847,686
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