By Jamie Martin
In a move to protect family farms and small businesses, Rep. Tracey Mann (KS-01) and other U.S. lawmakers have reintroduced legislation to preserve the stepped-up basis provision.
This tax provision allows heirs of family-owned farms to adjust their cost basis of inherited assets like land and equipment to reflect their fair market value, protecting them from hefty capital gains taxes.
“More than 98% of all American farms and 90% of American businesses are family-owned and operated,” said Rep. Mann. “Eliminating stepped-up basis and imposing this farm killer tax will destroy the livelihoods of producers and small business owners across the country.”
U.S. Department of Agriculture study revealed that eliminating the stepped-up basis would significantly raise taxes for 66% of midsized farms, threatening their ability to continue operating.
Lawmakers, including Reps. Costa (CA-19) and Craig (MN-02), are rallying to preserve this provision to help family farms continue to be passed down across generations. “Preserving the stepped-up basis is crucial to ensuring the survival of family farms and businesses,” said Rep. Costa.
This resolution aims to protect the financial well-being of America’s farmers and ranchers by ensuring they are not burdened with unnecessary tax liabilities.
By standing firm on the preservation of the stepped-up basis, Congress is supporting the continuity of family-owned businesses and agricultural operations for future generations.
Photo Credit: usda
Categories: National