- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Winter Olympics
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
2
Posted on 12/27/24 at 9:32 pm to pdubya76
What a waste to use 3000 acres of timber for a dang solar field.
Posted on 12/27/24 at 9:35 pm to Roy Curado
Do.
Not.
Sell.
Not.
Sell.
Posted on 12/28/24 at 12:28 am to pdubya76
There’s big one just south of Monroe, La. On US 165.
Eye sore would be an understatement.
Have several ancestors that rest in the Roberts Cemetery in Amite Co.
Eye sore would be an understatement.
Have several ancestors that rest in the Roberts Cemetery in Amite Co.
This post was edited on 12/28/24 at 7:01 am
Posted on 12/28/24 at 8:06 am to Roy Curado
You’re getting biased answers because it’s the OB. I have bought recreational timberland in MS. My advice is that, on the average, this asset class is not a great investment unless you derive significant personal satisfaction/enjoyment from the property. Of course, if the land is in an area likely to see development, my advice likely wouldn’t apply.
Posted on 12/28/24 at 8:46 am to MoarKilometers
Fixed
This post was edited on 12/28/24 at 10:45 am
Posted on 12/28/24 at 9:52 am to turkish
Land may not be the best investment, but it’s nice to have diversity in your investments.
Posted on 12/28/24 at 11:03 am to Roy Curado
Find a couple pics of random 6 or 7 point bucks, a couple Jake turkeys, and a couple wood ducks and say those are pics from your place. Take the pics and create a word document, print it out, and place them at a couple of plants in SE La and have them bid on exclusive hunting rights. Should expect about $15-20 an acre.
Lease out the hay rights also.
That covers your yearly taxes and a couple of nice vacations for the fam
Lease out the hay rights also.
That covers your yearly taxes and a couple of nice vacations for the fam
Posted on 12/28/24 at 11:34 am to MoarKilometers
Even though he fixed it to 3000 acres that’s almost 5 square miles. Seems a bit much.
Posted on 12/28/24 at 11:43 am to TigerDeacon
I hope it’s not that much land but that’s what we are hearing. It will be built by Swift current.
Posted on 12/28/24 at 11:54 am to prostyleoffensetime
quote:
He gets a stepped up tax basis, so he only has to pay taxes on the capital gain from date of death.
Example: Bequeather buys land for 250k in 2014. They die in 2024. Land appraises for 500k when bequeather dies. Bequeathed wants to sell land after a couple years. Gets it sold for 600k. He pays taxes on 100k, not 350k.
This is why he needs to get an appraisal, to establish a value at date of death.
Yes this is the way it works in MS.
Posted on 12/28/24 at 11:57 am to 257WBY
That’s what I keep telling myself too.
Posted on 12/28/24 at 1:18 pm to Roy Curado
My advice is make an appointment with a reputable accountant that is experienced in land management. It will be money well spent and might even give you options you haven’t thought of.
Posted on 12/28/24 at 1:36 pm to Roy Curado
God I’d love to receive 200 acres. I’d have a private shooting range for sure
Posted on 12/28/24 at 1:43 pm to turkish
Even if the 200 acres is inherited?
Posted on 12/28/24 at 1:52 pm to GRTiger
It’s still opportunity cost, whether inherited or purchased.
In a very simplified way…. An inherited asset worth $1m (could be sold for that) is ‘costing’ you $80k a year if you can make 8% elsewhere (option B). If the inherited asset isnt paying or appreciating at 8%, it’s a poor investment decision to keep it in comparison to option B.
In a very simplified way…. An inherited asset worth $1m (could be sold for that) is ‘costing’ you $80k a year if you can make 8% elsewhere (option B). If the inherited asset isnt paying or appreciating at 8%, it’s a poor investment decision to keep it in comparison to option B.
This post was edited on 12/28/24 at 2:25 pm
Posted on 12/28/24 at 3:18 pm to turkish
quote:
In a very simplified way…. An inherited asset worth $1m (could be sold for that) is ‘costing’ you $80k a year if you can make 8% elsewhere (option B). If the inherited asset isnt paying or appreciating at 8%, it’s a poor investment decision to keep it in comparison to option B.
You may need to complicate it a bit. If I can't afford $1 million in assets, I'm not losing 80k a year in lost opportunity. Not to mention inheriting means you can still invest your cash elsewhere.
Posted on 12/28/24 at 3:38 pm to GRTiger
Option A: you inherit $1M worth of land and sit on it.
Option B: you liquidate and invest in an account that pays a 5% interest rate. After 365 days the account is worth $1,050,000. If you wanted to, you could go get 500 Benjamins and leave the $1M to make 500 more for next year.
In this example Option A ‘costs’ you $50k per year relative to Option B. That’s opportunity cost, again with some details left out. Question always becomes what is the interest rate for B vs that which the land appreciates, plus taxes, expenses, etc.
Option B: you liquidate and invest in an account that pays a 5% interest rate. After 365 days the account is worth $1,050,000. If you wanted to, you could go get 500 Benjamins and leave the $1M to make 500 more for next year.
In this example Option A ‘costs’ you $50k per year relative to Option B. That’s opportunity cost, again with some details left out. Question always becomes what is the interest rate for B vs that which the land appreciates, plus taxes, expenses, etc.
This post was edited on 12/28/24 at 3:44 pm
Posted on 12/28/24 at 3:44 pm to GRTiger
If the land is just sitting idly, not generating income, and not appreciating in value, you’re losing 80k by not selling it and investing that 1 million into an index fund that tracks the Nasdaq, S&P, etc. returning 8% on the $1 million.
That is opportunity cost, and strictly a mathematical way of viewing it.
If you can take that $1 million property and make it generate some revenue, appreciate in value, and enjoy it recreationally to where it’s worth $80k/yr to you, then there is no opportunity cost.
If you can’t generate enough income to return that 8%, then the enjoyment you derive from owning the property factors a great deal in how much of the opportunity cost you’re willing to eat.
It’s all a matter of personal preference and how you view land ownership really… Unfortunately, there are real mathematical realities that you have to consider no matter how you feel about it.
That is opportunity cost, and strictly a mathematical way of viewing it.
If you can take that $1 million property and make it generate some revenue, appreciate in value, and enjoy it recreationally to where it’s worth $80k/yr to you, then there is no opportunity cost.
If you can’t generate enough income to return that 8%, then the enjoyment you derive from owning the property factors a great deal in how much of the opportunity cost you’re willing to eat.
It’s all a matter of personal preference and how you view land ownership really… Unfortunately, there are real mathematical realities that you have to consider no matter how you feel about it.
This post was edited on 12/28/24 at 3:47 pm
Posted on 12/28/24 at 3:54 pm to lsufan1971
quote:
Get ready to pay the tax man once you sell it. Capital gains going to be at least 15%.
Maybe not. It all depends on how much it's valued on the succession documents (i.e. "basis"). Those valuations can be rather high sometimes.
Page 2 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News