So here is my "Either/Or" question today: Would your rather have $60K in gold coins, safely locked away in a safety deposit box at your local bank or would you rather have $60K (i.e.24 acres) of tax free, Iowa timberland?
No wrong answers here, but I am starting to suspect that someone trying to steal the latter option might find it to be a great deal more difficult to do than trying to steal the former one.
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Hey Packard, I would hands down pick the timberland, because it would probably be worth more than $2500/acre. Also with gold you "buy retail and sell wholesale", so when you want to sell it, you go to Rick on Pawn Stars and he says "I need it appraised first" the appraiser says "It`s worth $60,000" then Rick says "I`ll give you $25,000", so maybe he`ll give you $30,000 for your $60,000 in gold...then to add insult to injury he`ll say "I`ll need to send you a 1099 because it`s over $600" so any "profit" won`t be taxed as capital gains, but rather at your personal income tax rate.
Where as the Iowa timberland, you have a option of a 1031 exchange for farmland, sell the timber, sell building lots and any gains is taxed at capital gains, with the basis deducted.