Agricultural Law

by Joseph Aker, Cottonwood Law Group, LC

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Farm land in Kansas

Basis is defined as the amount of your capital investment in property for tax purposes. In common terms its what you paid for the property or its value when you acquired it. Basis plays a big role in determining depreciation, recapture, and the dreaded capital gain. This article will discuss how basis in property can affect property transfers.

Livestock

In the current agricultural economic climate, where more farmers and ranchers are looking at refinancing and other lending sources, it is important to recognize some of the specifics contained in security agreements. Often in a livestock feeding operation, the operator may finance or collateralize feed purchased for livestock. An interesting problem arises in this situation when the feed is fed to and consumed by livestock.

Fence around a ranch in Kansas

There are two basic theories or types of fence laws:

(1) fence-out (meaning it is a property owner’s duty to protect their land from livestock) and

(2) fence-in (meaning it is a livestock owner’s duty to keep their livestock fenced in and restricted from trespassing onto another person’s property).

Kansas is a fence-in state; therefore, this article will be discussing fence-in laws.

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Basis is defined as the amount of your capital investment in property for tax purposes. In common terms its what you paid for the property or its value when you acquired it. Basis plays a big role in determining depreciation, recapture, and the dreaded capital gain. This article will discuss how basis in property can affect property transfers.

Image

In the current agricultural economic climate, where more farmers and ranchers are looking at refinancing and other lending sources, it is important to recognize some of the specifics contained in security agreements. Often in a livestock feeding operation, the operator may finance or collateralize feed purchased for livestock. An interesting problem arises in this situation when the feed is fed to and consumed by livestock.