Taxes

[cottonpicken]

Having a brain fart.

Cant remember what percent of land rent expense is a
write off?

[bluefargo]

100% deductable

[fjlip]

And buying land is with after tax dollars. Only the loan interest is a deduction. Therefore, live poor paying land off, die rich.

[cottonpicken]

I was thinking in my head it was a hundred percent,but then i thought that doesnt make any sence.

Of course "my bad" was thinking anything in this world makes sence.

[SASKFARMER3]

FLIP dont over pay and get it done fast then dont have to wait till die to enjoy it. Renting is not answer, always always someone looking over the fence.

[fjlip]

It seems that one needs to overpay to buy at all. Gossip says at Quill Lake $600000 offer for a section was refused by owner. No way to pay for that land at current ROI. I bought a quarter in 1983 for 130000 with 16% interest, wonder if that ever paid for itself. If the land can not pay for itself, you are further behind to buy it. As for rent, another has rented for past 25 years on 1/4 share and would have paid double the 400000 selling price in 1985, to this point.

[rockpile]

FJllP & Sask 3
It has not been since the early 70's that land values
had any relationship to ROI - since then the buyers
are those with surplus cash who simply want to
expand. That is why the big get bigger and the
smaller are leaving. When I sold part of my
operation 7 years ago, it was because I got an offer
to good to refuse - about double market values at
the time - they really wanted it. I got railed on by
other neighbours who felt I sold too 'high'. Sorry, I
adhere to the principles of the market place and I'm
not the Dept of Social Services.
On the other hand, I still have a large land base
that I rent out and have done so to the same tenant
for 7 years. Not once have I asked for a rental
increase as I pay close attention to their long term
viability and work with them as partners. They take
good care of the land, it fits well into their
operation, and I can count on the stable cheque
coming in year after year. I could play the hop skip
and jump game too, but feel that landlords should
have an obligation to develop long term
partnerships with their renters and that it should be
a win-win for both parties. I guess I'm just not part
of the 'greedy bastard tour'. So if you're looking to
rent, why not sound out someone looking for a
long term stable relationship. My experience taught
me that there are too many out there that think of
'this year' only - look at the long term and don't
over 'pencil' so to speak.
Rockpile

[furrowtickler]

rockpile, there should be more like you! Common sense is a rearity these days.

[seabass]

Amen brother! Could teach a few of the greedy bastards around here how to be good landlords.