As a fiduciary financial advisor in Monroe, Holland Capital helps families who own farmland or acreage decide whether to sell, how to handle the tax and how to invest the proceeds. We work with clients in Monroe by video and phone, and meet in person by appointment at our office in Ballantyne, about 33 minutes away.
The land may have been in the family for decades. The offers are newer.
Monroe is the Union County seat, in a county that still has hundreds of working farms. As the area grows, owners of land around Monroe may be approached by builders who want to buy.
Selling land is not like selling stock. The tax can be large. Some of it may come due from past years. The price is only one part of the decision.
A plan made before you sign can change how much you keep.
The Tax on Selling Land
Land you have owned for many years may have gained a great deal of value. Some or all of that gain may be taxed as a capital gain, depending on the property and how it was used. North Carolina taxes it at the state’s flat rate.
If the land has been taxed at its farm use value instead of market value, selling it for development can end that treatment. The county can then bill the taxes that were deferred for the three prior years, plus interest.
Our guide on capital gains tax planning explains how the gain is figured.
Ways to Spread or Defer the Tax
An installment sale lets the buyer pay over several years. Taxable gain may then be reported as payments are received, which can keep you in a lower bracket.
A 1031 exchange lets you roll the proceeds into other investment real estate and defer the tax. It has strict deadlines and rules, so it has to be set up before the sale closes. Our guide on the 1031 exchange covers the steps.
Keeping some or all of the land is also a choice. We compare what each path leaves you after tax.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
After the Sale
A land sale can turn a family asset into a large amount of cash in one year. It does not need to be invested right away.
Money for the tax bill and any planned spending or gifts is held aside first. A written investment policy statement then guides the remainder, covering risk, the income it should produce and each account’s role.
Our investment management following a land sale begins with what the money is meant to do.
How We Work with Clients in Monroe
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring the deed or tax card for the land, any offer or letter of intent, your last tax return and anything showing when and how you acquired the property.
We estimate the tax under each option, show what you would keep and help you decide what to ask for before you sign.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Holland Capital is based in Charlotte, and our office in Ballantyne is about 33 minutes from Monroe. If you are looking for a fiduciary financial advisor in Monroe, we meet by appointment at 15720 Brixham Hill Avenue, Suite 300, and handle shorter check-ins by video or phone. Holland Capital does not maintain a branch office in Monroe.
Map and directions: Holland Capital Management, 15720 Brixham Hill Avenue, Charlotte.
We work with clients throughout North Carolina. You can see the other North Carolina communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
What Does a Fiduciary Financial Advisor Do in a Land Sale?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. We plan the tax, structure and timing of the sale with your attorney and CPA, then plan what the proceeds should do.
Our fee applies to any proceeds you invest with us. You hear that from us before you decide.
Will I Owe Back Taxes If My Land Is in Farm Use?
Possibly. If the land leaves the present-use value program, the county can bill the deferred taxes for the three prior years, plus interest.
We ask the county for the figure early so it is part of the price discussion.
Where Would We Meet from Monroe?
In Ballantyne, by appointment. The drive from Monroe is about 33 minutes.
We can review documents by video between meetings.
Photo: Beckycafferylepage / Wikimedia Commons / CC BY-SA 4.0, cropped.
