I hope you're hanging in there with me on this subject. It seems like there's a new development every day or so now.

Yesterday I posted on the fact that Congress is back in session and the Farm Bill is something that they will be working on putting together as soon as possible, given that the spring planting season will be upon us before long. Here's today's news:

On Monday (yesterday), there was a revision issued in relation to estimated revenues to be raised by the reclassification of like-kind status regarding subsidized farm land. The original estimate was an increase of $27 million over ten years. The revision that was issued yesterday increased that estimate to $281 million, more than ten times as much as the original estimate. That is bad news for the future of the subsection of the bill that relates to Section 1031. In English, what that all means is that in order to have the provision removed from the bill, the House and the Senate will have to come up with some other manner within the bill to compensate for that $281 million. That will necessitate either a tax increase of some sort or the reduction or elimination of a tax benefit that is contained somewhere else in the bill. Obviously, that will make removing the language changing the definition of like-kind even more difficult than it was before.

Even more reasons to call those senators and representatives... have you made your call yet? 

Ken Tharp

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Copyright © 2008 By Ken Tharp, All Rights Reserved. * The Next Verse... Today's Update on the Farm Bill * Contact Ken Tharp for information on Section 1031 tax-deferred exchanges anywhere in the United States.