Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   

Agricultural News


Newly Proposed Tax Reforms Could Have Huge Impacts On Multi-Generational Farms and Ranches

Mon, 09 Aug 2021 14:42:04 CDT

Newly Proposed Tax Reforms Could Have Huge Impacts On Multi-Generational Farms and Ranches American Farmers and Ranchers are still reeling from a late-April announcement by the White House of a financial plan aimed to level the tax playing field. The Biden administration is calling the American Families Plan “a once-in-a-generation improvement in our nation’s future,” according to the White House website.

Included in the plan are tax reforms, one of which has farmers and ranchers questioning what the industry will be like for future generations. The Biden administration is moving forward with “eliminating long-standing loopholes, including lower taxes on capital gains and dividends for the wealthy, which reward wealth over work,” according to the Budget of the U.S. Government for fiscal year 2022, proposed to Congress on May 28,2021.

One of the loopholes the Biden administration is considering giving the boot is Stepped-Up Basis.

According to the Tax Foundation, “The step-up in basis provision adjusts the value, or ‘cost basis,’ of an inherited asset (stocks, bonds, real estate, etc.) when it is passed on, after death. This often reduces the capital gains tax owed by the recipient. The cost basis receives a ‘step-up’ to its fair market value, or the price at which the good would be sold or purchased in a fair market. This eliminates the capital gain that occurred between the original purchase of the asset and the heir’s acquisition, reducing the heir’s tax liability.”

Meaning the next generations of farmers and ranchers could struggle too much with capital gains taxes to continue the family business.

In a news article by the Farm Bureau, Tennessean Mike Brundige said he’s concerned about the possible tax legislation.

“The elimination of stepped-up basis would certainly lower the amount of assets that we were able to pass on to our children,” Brundige said. “There’s no reason to have them accountable for taxes that accrued on assets 40 or 50 years before.”

The Farm Bureau is urging concerned citizens to reach out to their representatives now to support the continued use of stepped-up basis .

You can read the entire article by the Farm Bureau, by clicking here.

To learn more about how Stepped-Up Basis affects you, click here.


   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • May 19, 2022, Market Wrap-Up with Justin Lewis  Thu, 19 May 2022 14:19:15 CDT
  • ARA Honors Senators Moran and Young with Legislator of the Year Award  Thu, 19 May 2022 14:09:37 CDT
  • U.S. Cotton Trust Protocol Doubles Grower Participation in Second Year   Thu, 19 May 2022 12:37:53 CDT
  • USMEF Statement on Study Confirming Effectiveness of Export Market Development Programs  Thu, 19 May 2022 11:12:04 CDT
  • OKFB to host FFA Reporters Conference July 11  Thu, 19 May 2022 11:05:32 CDT
  • Vive Crop Protection Recognized by SDTC as 2022 Sustainability Changemaker  Thu, 19 May 2022 11:03:55 CDT
  • OSU Announces Two New Turfgrass Varieties  Thu, 19 May 2022 10:58:29 CDT
  • Oklahoma FFA Members named to 58th Class of U.S. Presidential Scholars  Thu, 19 May 2022 10:50:32 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Oklahoma City Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.
       

       

    Search OklahomaFarmReport.com

    © 2008-2022 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.