Farm Bureau Supporting Estate Tax Legislation

A proposal by the IRS to change how certain estate taxes are calculated with regards to liquidation of interest, gift and generation-skipping transfer taxes is being challenged by Congress.

American Farm Bureau Tax Specialist Pat Wolff said this would include family farms, but that the IRS proposal would make handing down the business harder.

“When the parent dies it’s important that the business be able to transfer to the children so that it will continue. High estate taxes make that harder, and we want to make sure that we keep the estate taxes as low as possible.”

The IRS proposal, if passed, would mean that farmers and ranchers could likely pay more in estate taxes.

Two bills, one in the Senate and one in the House, have been proposed to invalidate the IRS proposal, something Wolff said would be good news.

“The leaders on these bills are hoping to pass them before the end of the year and any farmer or rancher who’s concerned about this proposed estate tax increase should contact their Senator and Representative and ask them to cosponsor these bills.”