Change to the tax code could be the death of multi-generational farms

A Farmer’s National executive is sounding the alarm about a potential tax law change that could force multi-generational farms to sell.

Randy Dickhut says that if the Biden administration does away with stepped-up basis or reduces the estate tax exemption, it could force more farm families to sell off land.

For example, if you die, the value of your land would be the current market value, not what it was when you bought it or inherited it. It will also be taxed accordingly.

Dickhut says that in Canada, where the capital gains tax is paid upon death, some retired Canadian farmers sell land because they do not want to force the estate to pay the fee, or cannot afford to.

President Biden has proposed cutting the estate tax exemption of more than $11 million dollars in half.