Illinois Farm Bureau FB ACT members should email President Joe Biden and Congress urging them to reconsider the “transfer tax” contained in the STEP Act and allow continued use of stepped-up basis.
Proposed legislation would tax capital gains at death and eliminate stepped-up basis as a way to raise revenue for government spending.
Stepped-up basis is a process that allows a farmer to pay capital gains taxes only on a property’s increase in value since the time that land was inherited, instead of paying the full increase in value since it was purchased by a deceased relative. In addition, the tax on the new stepped-up value is deferred until property is sold by the surviving family member.
“This proposed asset ‘transfer tax’ contained in the STEP Act would be detrimental to our nation’s small family farmers,” said Richard Guebert Jr., IFB president. “It wouldn’t take many acres of farmland, farm machinery and equipment, buildings or grain bins to trigger the extremely low $1 million asset threshold. Several years ago when the threshold was lower, many family heirs were forced to sell the land they inherited to pay the estate taxes. This proposal to eliminate stepped-up basis would have the same detrimental effect.”
Members will be alerted in a text message and an email notification. Members can then complete the action request by clicking on the link in the text message or the “TAKE ACTION” button in the email.
Many IFB members are also involved in the American Farm Bureau Federation’s grassroots advocacy program, but it is only necessary to complete the action request once. The action request will be live until further notice.
This story was provided by FarmWeekNow.com.