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Country Lifestyles

The Starting Place: The Simple Explanation of a 1031 Deferred Exchange

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By Dal Houston

While many exchanges are complex, the explanation for how a deferred exchange works is a simple one.

Tax Consequences

The first element of an exchange to understand is the tax consequences of the sale of a business, investment and/or productive piece of real estate. There are two aspects that can trigger a tax consequence for the taxpayer.

The first type of taxable event occurs when the present sales value of the property is more than the taxpayer’s initial purchase price. This difference is a capital gain, which is subject to capital gains tax. The second type of taxable event is depreciation recapture, which is when the present sales value of the property exceeds the taxpayer’s adjusted basis in the property. The adjusted basis is the taxpayer’s initial purchase price, with adjustments made from depreciation deductions where the taxpayer has taken on the improvements and additions to the property. It is important to note that depreciation recapture is taxed at the taxpayer’s ordinary tax rate. Obviously, many sales involve both depreciation recapture and capital gains.

To read more, pick up a copy of the November issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

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Country Lifestyles

When a City Girl Goes Country

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By Annette Bridges

I suspect I am not the only city girl married to a country boy who goes deer hunting. I have many fun memories of sharing my man’s love of hunting, especially when the experience included camping with his best buddies and their significant others. I will never forget the first time we butchered and packaged venison from our first deer hunting trip together. My vegetarian roommate never forgave me for using our kitchen table.

Actually, my man no longer has a deer lease or joins his buddies for Colorado hunting adventures. For most of our four-plus decades together, there were a few November nights spent apart when he went hunting without me. It was during one of these times I started experimenting with watercolor paints. Art has always been a longing and a love. In fact, I wanted to take some art classes in college, but my schedule never seemed to permit it.

My interest in creating art goes back to my young childhood years with my daddy. He was quite talented, and I have early memories of him showing me cartoon and doodling techniques. He passed away when I was 10 years old.

To read more, pick up a copy of the August issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

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Country Lifestyles

Lacey’s Pantry

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By Lacey Vilhauer

Ingredients:
FOR THE CHIPS
4 yellow squash, cut into rounds
1/4 c. olive oil
Kosher salt
Freshly ground black pepper
Pinch red pepper flakes
1 c. panko
1 c. shredded Parmesan
2 tbsp. Freshly chopped parsley
1/2 tsp. garlic powder
FOR THE DIPPING SAUCE
1 c. sour cream
1 tbsp. lemon juice
1 tbsp. freshly chopped parsley
Kosher salt
Freshly ground black pepper

Directions:

  1. Preheat oven to 400° and line a baking sheet with parchment paper. In a large bowl toss together squash and olive oil. Season generously with salt, pepper, and red pepper flakes.
  2. In a shallow bowl mix together panko, Parmesan, and parsley. One at a time dip squash into panko mixture, pressing to coat then place on prepared baking sheet.
  3. Bake until golden and crispy, 30 minutes, flipping halfway through. Meanwhile make dipping sauce: In a small bowl, stir together sour cream, lemon juice, and parsley. Season with salt and pepper. Serve chips with dipping sauce.
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Country Lifestyles

You Have to Plant the SeedBefore It Will Grow

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By Dal Houston

When we moved out into the country 17 years ago, the area around our house did not have one single tree around it; it was nothing but a wheat field. The wind and the dirt, from miles around, hit the house with nothing to break it, and I sometimes wondered if the house would blow away. The inside of the house required a thorough dusting every day. Trees do more than just provide a break from the wind. They provide privacy.

I remember people driving by and being able to see our every move, whether we were sitting on the front porch or at the dining room table, watching television, or if the kids were playing in the yard. We felt that we were on full display for the whole world. So, shortly after moving there, I started planting and transplanting trees to break the wind and to give us some privacy.

At the time, the trees were so small, and my actions seemed so insignificant. I figured we would be old and dead before those tiny trees could ever grow to a size sufficient to serve their purpose.

To read more, pick up a copy of the August issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

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