Higher commodity prices should have an impact on land values. “Maybe this will change the volume of land we’ll see in the market and the pricing,” said Chris Griffin, president, Red River Land Company. “We are also watching the tax changes ahead.” There are changes being proposed in stepped-up basis and capital gains. One of the more significant items impacting the real estate market could be the 1031 exchanges, if that survives. “We’ve had preliminary discussions with clients where they’ve envisioned selling something in advance of the capital gains hike,” said Griffin. “The hard part is the uncertainty. There’s a lot of talk taxes won’t be retroactive so you’d have through the end of the tax season, if rates go up, to make a sale.”
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