Another Buying a Property Question

[Maddox]

Wife and I are about to purchase 70 Acres with a barndominium on it.

The property is currently under a Timber Exemption, and we intend to keep it under the timber exemption and do a thinning on it in about 3-5 years.

QUESTION: Would you put the property into a Farm LLC or put it under your personal name?

At first, I was leaning toward the LLC for both liability and tax purposes, but I will not turn a profit on this property with the timber, so after three years of loses the IRS will balk at the right-off.

Any suggestions?

[hillcountryhunter]

We purchased 200 acres this past summer and put it under an LLC mainly for liability reasons. My wife is partners in a couple other businesses and is an independent contractor in a very litigious field. For this reason we wanted the property protected under its own entity.

[Throwin Darts]

I put mine in a separate entity as well for liability reasons.

[Aggiebush]

For timber, you have so many years to show a profit, I think 15 years or so. We had a place near Jefferson that we did this with, and never had a problem with it. When we finally did some thinning, the note was able to be paid off, and all was good.

[RiverRat1]

There's not really much liability in Texas anymore unless you are knowingly negligent. Just post the Agritourism signs http://texasfarmbureau.org/agritouri...gns-available/



I put mine under the family trust. But I really know very little on the subject.

[CoachS]

How do you go about putting a farm or something like that in a family trust. We have a trust already just wasn't sure how to go about doing that. Any info would greatly be appreciated.

[BitBackShot]

How do you go about putting a farm or something like that in a family trust. We have a trust already just wasn't sure how to go about doing that. Any info would greatly be appreciated.

I don't know your specific situation and this isn't legal advice, but that typically just involves the owner (you) drawing up paperwork that the farm is being contributed to the trust (make sure you can actually do this if the farm isn't owned outright) and then notifying the County of the change in ownership.

[CoachS]

Thank you for the info.