Senate Amendment May Protect Farms and Ranches from Transfer Taxes

In the middle of the U.S. Senate’s flurry of amendments and votes this week on a $3.5 trillion budget reconciliation resolution was a unanimous vote to protect farmers and ranchers from proposed higher taxes on capital gains.

The U.S. Senate voted 99-0 to accept an amendment by Sen. John Thune, R-S.D., that would protect owners of businesses, farms and ranchers to pass on land without imposing capital gains on the appreciation and value from the prior generation. Changing the law on stepped-up basis would “hit generationally owned enterprises hard, particularly in rural communities, and it could force families to sell off part of the farm or business just to pay the new tax,” Thune said when he brought his amendment to the floor.

Source: DTN