“Step-up” Basis Fears Calmed, Transfer Tax Removed in Updated Legislation Proposal

When President Biden unveiled America’s Family Plan, farm country got loud in the face of the proposed changes to the “step-up” basis, which would have disproportionately taxed young farmers inheriting land from family members. In the new proposal from the House Ways and Means Commmittee, farm families won’t be taxed when a death occurs, however, a more manageable estate tax could take its place. In certain cases, it is possible the IRS would allow this estate tax to be paid off over a 15-year period. It is unclear whether the Senate version will make similar changes in their proposal. Read more updates on the next steps here.