LandInvestors.com Forums **Ask A Question** selling to states

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  • #17473

    Jason Cochard
    Member
    Post count: 53

    Anyone have any success selling to states, such as state park people? I have something where all the neighboring properties are owned by the state.

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  • Brad Melis
    Participant
    Post count: 16
    Pro

    Jason,

    My experience selling land to the state was not very successful. I had 160 acres bordered on three sides by state land that was being used as a wild life reserve. After several discussions with different state wildlife people the best I ever got was “we would really love your land would you consider donating it and taking a tax deduction”. I probably wouldn’t go down that path again. You have to remember they are working with budgets and everything is done on a priority basis. They may be interested but it could take a long time for a response.

    Jason Cochard
    Member
    Post count: 53
    Pro

    Thanks Brad. Did your parcel have access at least?

    In my case, this particular state just publicized their budget surplus, but I would still imagine they’d just offer the same deal.

    Second thought, which might infuse this with a different topic:

    I’m not sure about anyone else, but I put the asset’s fair market value on my balance sheet, not my acquisition cost. And we typically acquire at much lower levels than FMV. Thus, a donation to the state would amount to a tax benefit of FMV, rather than acquisition cost. If you donate a $25k parcel that you acquired for $1k, that seems like a win. Anyone have insight into that or experience?

    Darald (@AggieLand)
    Participant
    Post count: 178

    @carpeawesome sounds like a CPA question, let us know what you find out.

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