Many ag producers and Republican lawmakers are seeking answers about the Biden administration’s potential changes to tax policy.
Nebraska Republican Congressmen Adrian Smith says a repeal of stepped-up basis would increase the tax burden on producers. “Economic studies even after the proposed exemptions more than 95 percent of farms and ranches would be hit with the average tax bill in excess of $1 million and we would see 800,000 job losses in the first decade from this proposal all by itself.”
Stepped-up basis allows adjustments to the value of inherited assets when they’re passed on after death, which would reduce the capital gains tax owed by the recipient.
