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Kicking the Can Down the Road

“Kicking the can down the road” is a phrase that is typically associated with the growing debt of our country. It is also used in the agricultural community to represent a tax strategy that relieves ownership of this year’s taxes while creating a burden ‘down the road’ that the owner will face in retirement. These types of structures have forced a number of farmers to rethink retirement as it approaches because of the overwhelming tax liabilities that appear in the last year of farming.


Each time you hear the term “kicking the can down the road” you should immediately think “lack of planning.” The country’s mounting debt is due to lack of implementing sound fiscal planning (no politicking here). Each day spending increases, as does our country’s debt due to “lack of planning.”


“kicking the can down the road” = lack of planning

MDPT = Preserving Value


Similarly, a farm owner who implemented a tax strategy years ago to receive a short-term financial benefit will finally reach the tax filing year where “payment is due.” The financial crunch felt by the farm owner most probably wasn’t due to the tax strategy implemented with the accountant years ago, it was because there was a lack of planning and follow on execution to make the tax strategy a long-term success. Coffee shop talk about the farmer owner will focus on “kicking the can down the road” without understanding that failure was due to a lack of planning.


The Power of Deferral

The Monetized Deferred Payment Transaction (U.S. Patent Pending) MDPT, defers ordinary income and capital gains taxes for up to 30 years. The seller receives a loan of up to 95% of the net sale amount. Wall Street money managers understand that deferring dollars to a future date allows them to grow those deferred dollars and then pay for them with cheaper money, when compared to today’s dollar. In other words, they have a plan and execute it!


Financial Team

It is up to you to recruit and develop a plan with the financial team that deploys your MDPT strategy to deliver a Wall Street type tax deferral strategy for your farm and farm land sale(s). Your strategy can’t be to just execute and forget, it must be executed and managed. It is your money, your timeframe, your plan.


“Kicking the can down the road” is a phrase developed because plans weren’t developed for the long term. The focus was on short term relief that turned into a long-term crisis. MDPT requires your CPA and/or tax attorney’s involvement to implement. MDPT isn’t “kicking the can down the road” it provides an approach for your future by Preserving the Value of your farm.

    © 2020 by Farmers First Trust Company DST

    The information contained within this web site is provided for informational purposes only and is not intended to substitute for obtaining accounting, tax, or financial advice from a tax attorney or professional tax planner.  Distribution hereof does not constitute legal, tax, accounting, investment or other professional advice. Recipients should consult their professional advisors prior to acting on the information set forth herein.  Farmers First Trust Company DST utilizes the monetized installment sale approach for farms and farming

    purposes in the United States of America only.