Seus Land Exchange Inc.

Thursday, December 11, 2008

Using Land Held in Your IRA for Hunting and Fishing

This is a follow up post to How to Invest in Land Using a Self-Directed IRA.


We've received the question, "Can I use land held in my IRA for hunting, fishing, or recreational use?"


Answer: You are unable to use any land or property held in your IRA for personal use.


The IRS speaks of specific acts to avoid so that you don't incur any extra taxes or other costs, included loss of IRA status:


Prohibited Transactions

Generally, a prohibited transaction is any improper use of your traditional IRA account or annuity by you, your beneficiary, or any disqualified person. Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendant, and any spouse of a lineal descendant). The following are examples of prohibited transactions with a traditional IRA:

  • Borrowing money from it.
  • Selling property to it.
  • Receiving unreasonable compensation for managing it.
  • Using it as security for a loan.
  • Buying property for personal use (present or future) with IRA funds.”

Source: IRS Publication 590


You may not personally perform maintenance on that land either. You may hire someone else to perform this tasks, and pay for it with money from your IRA.


Once you retire, you are free to use the land as you please!


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Tuesday, December 9, 2008

How to Score Deer Antlers


How do you determine if your deer has made it in the record book?


Deer are scored based on the size of the tines, the diameter of the bases, and sometimes other measurements as well---such as the total spread between antlers. All these measurements are added up, and the total number of points is the deer's score.


Deer are further divided into "typical" and "non-typical" depending on the configuration of the antlers.


Each record book (such as Boone & Crockett, for firearms, and Pope & Young, for archery) has it's own minimum criterium for what constitutes a trophy (which means you made the book).


Although you can learn the systems, and score your own deer for fun, official scores must be taken by somebody certified by the record keeping organization.


If you want to score them yourself, here is the method:

(there is also a useful video demonstrating the how to score deer antlers below)


To start off you need your rack, and a few tools:

  • masking tape
  • marker
  • a piece of paper
  • a zip tie or a metal band deer tag
  • tape measurer, the kind a seamstress uses


1. Tear pieces of tape around an inch long. Places the tape along the main beam where each tine originates. If non-typical growth comes off another tine, mark that tine's orgin as well. Mark on the tape exactly where the tine originates. In other words, envision where the beam would continue if the tine did not exist, and make the mark there. Use a metal band deer tag or another tool to make your mark as straight as possible. Do this to each side of the beam.


2. Start measuring the rack. Start on the tag side of the beam at the burr. Follow along the center line of the main beam on it's outside edge. Tape the measuring tape in place so it doesn't slip. Once you have your measurement, write it down.


3. Measure the antler tines. Start measuring the tines at the line you marked on the tape to the tip. Do this for each typical and non-typical tine.

You are to measure to the nearest 1/8, and record your measurements.


4. Take mass measurements. For each mass measurement you are going to take the measurement at the narrowest point. You get credit for the smallest area of circumference for each of the 4 locations per side.

The first measurement is to come between the burr and first point. The second measurement comes between the first and second point. The third measurement comes between the second and third point. Finally the last measurement is taken between the third and fourth point. If no fourth point is present (like an 8 point) you take the mass measurement half way between the third point and the end of the main beam. Do not take the measurement over the burr. Record your measurements.


5. Measure the inside spread of the main antler beams at the widest place. This measurement should be at a right angle to the longitudinal axis of the skull, and parallel to its horizontal axis.


6. Add it all up!


Here is an example (click to see photos too) of how to add up your points:


Right Left Difference


MB    22 4/8    21 7/8    0 5/8

G1      3 5/8      3 7/8    0 2/8

G2      9 3/8      8 0/8    1 3/8

G3      7 7/8      8 2/8    0 3/8

G4      4 3/8      5 5/8    1 2/8

G5                     2 4/8    2 4/8


Abnormal Points.


3 2/8         3 2/8

4 0/8         4 0/8


Mass


H1    4 6/8    4 5/8    1/8

H2    4 2/8    4 1/8    1/8

H3    4 6/8    5 0/8    2/8

H4    4 3/8    4 3/8        0


Total Right      Total Left       Total Difference


65 7/8             68 2/8           14 1/8


(+ abnormals 73 1/8)


Inside spread


17 1/8


Gross Non-Typical- 158 4/8 (Gross non-typical includes every inch of antler no deductions.)


Net Non-Typical- 144 3/8 (Net non-typical includes the gross typical score, minus the side to side differences, but then you add on any abnormal points.)


Gross Typical- 151 2/8 (Gross typical score includes all typical points, including deductions that are not considered abnormal points. Abnormal points are never added to the typical score.)


Net Typical- 137 1/8 (Net typical includes all typical points, then subtract all side to side differences and any abnormal points.)


Click here to download score charts as a pdf.


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Monday, December 8, 2008

How to Buy Land for Sale


Buying land can be a bit stressful. Understanding how to buy land for sale will help to ease your mind in that you will be familiar with what is to come. Of course, getting a great land agent can help your situation, but the buying process is the same regardless.

The Basic Land Buying Process:


1. Locate the property

2. Understand the property rights

3. Value the property

4. Complete the transaction


Finding the best location for your property:


You must clearly define the major intended uses for the land you want to purchase. Have a list of attributes to help narrow your search.  Also identify the important geographic attributes to easily identify where your land should be.


Understanding property rights and do due diligence:


Potential buyers should view the property as if they eventually intend to sell it. Understanding property rights can sometimes be difficult because they are less tangible and encompass issues from verifying ownership to identifying easements. All these stipulations need to be understood during the due diligence process.


Doing due diligence is the buyer's responsibility. Advance research gives you a fact based offering price.


Check into what the seller discloses, boilerplate inspections, fee ownership, general warranty deed, access, acreage, boundaries, easements, and more.


How to value the property:


Valuing land is a specialized activity requiring knowledge of local markets and the influence of property features on prices.


Land price reports may assist buyers as they begin to formulate an offering price. The reports reflect general market conditions rather than particular farms or ranches.  Here is where an informed agent's help is very practical.


How to complete the transaction:


After negotiating a price, a land purchase typically culminates in a contract. Dr. Gilliland. a research economist with the Real Estate Center at Texas A&M University, details how this isn't always so easy:

"A young couple wanted a particular tract and inquired about the property of a nearby homeowner. The homeowner offered to provide a deed for a cash payment. The couple paid the cash, and the homeowner delivered the deed.


The buyers, however, discovered their deed was a quit claim deed instead of the more familiar warranty deed. The quit claim deed simply stipulates that the person providing the deed relinquishes any claim to the property in favor of the person receiving the deed. It does not guarantee or warrant that the person executing the deed even had a claim to the property. Had the homeowner owned the tract of land, title would have passed with the quit claim deed. However, in this case, the homeowner did not own an interest in the property, and the deed conveyed nothing."

Gilliland concludes:


"These difficulties by no means represent all problems for land buyers. Buyers unfamiliar with different properties in their target area, property values and different legal documents should avoid completing a transaction without competent assistance."

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