(NAFB) – Three new tax hikes for farmers and ranchers, that’s how the American Farm Bureau’s tax adviser describes President Joe Biden’s tax plan to pay for his massive infrastructure and social spending package.
President Biden addressing a joint session of Congress.
But Biden’s plan could still mean higher tax bills for some producers, according to American Farm Bureau’s Pat Wolff.
Stepped-up basis would still apply under those limits, and there’d be no tax if a farm remains in a family, while estate tax exemptions would not change. But Wolff says gains on like-kind real estate swaps will lose their exclusion.
USDA meantime claims that based on estimates, more than 98% of farm estates will not owe any tax at transfer, provided the farm stays in the family.
Farm Bureau’s position is that “current law” allowing capital assets to transfer tax-free at death is the best way to help farms and ranches. Biden’s plan may still allow that, but Wolff says it comes with “a lot of strings and conditions” that are still unknown.