| The Journal of Real Estate Finance and Economics | |
| Volume 23, Issue 1, Article 5 (Abstract) | |
| Title: | A Model of "Tax-Free" Exchange of Farmland |
| Author: | Peter F. Colwell and Carolyn A. Dehring |
| Abstract: | This study considers the alternatives available for transferring agricultural property on the urban periphery. The model examines the conditions under which market participants sell or exchange farmland. Contrary to popular opinion, we find that simultaneous exchanges are still feasible in the presence of delayed exchanges, particularly when the relinquished property is very large. The model also explains the observed pheonomenon that the sellers of agricultural property "overpay" in exchanges. |
| Keywords: | real property exchanges, taxation, deferred taxation, land price |