The “STEP Act” is getting push back from agriculture. The proposal contains multiple tax hikes affecting farmers, including the transfer of property.
Accounting expert Paul Neiffer speaks with RFD-TV’s own Janet Adkison on the main provisions in the act and what farmers need to know.
“What the act is simply saying is if you transfer appreciated property, it doesn’t matter whether you do it at death, your will... or during your lifetime, once you reach a certain-- a cumulative amount of transfers during lifetime... then you have to pretend like you’ve sold your appreciated assets, such as farmland, equipment, grain, etc; you have to pretend like that you pretend like you sold those assets for fair market value anytime you do that...” Neiffer explains.
He goes on to note, “This is not an estate tax issue, this is an income tax issue. The major issue with it, in my opinion, is that they are making it retroactive to January 1... this is a major provision if it goes through.”
For more information click HERE.