Posted June 20, 2014
Legislation to repeal estate taxes is ready for floor action with 218 co-sponsors, more than half of the House of Representatives, on board, according to an American Farm Bureau Federation (AFBF) press release available here. Wisconsin Ag Connection also published the release hereand Sierra Sun Times here.
Rep. Kevin Brady’s (R-Texas) Death Tax Repeal Act, H.R. 2429, would repeal estate taxes, and maintain stepped-up basis.
“Although permanent law enacted as part of the American Taxpayer Relief Act of 2012 provided significant estate tax relief, repeal is the best solution to protect all farms and ranches from the estate tax,” said AFBF President Bob Stallman.
Because it takes more capital assets, such as land and equipment to produce the same amount of income as other types of businesses, the estate tax burden rests heavily on farmers.
Surviving family members may be forced to sell off their assets if Congress fails to permanently repeal the estate tax.
“Look at land alone,” Stallman said. “As it skyrockets in value, the chances of surviving family members having to sell some substantial acreage to pay estate taxes grows right along with it. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports.”
For more information on estate planning and taxation, please visit the National Agricultural Law Center’s website here.