Stack of 100 dollar billsA proposal introduced in the Senate earlier this week would eliminate stepped-up basis and capital gains of unsold assets, changes in the “death tax” that could have massive financial implications for farmers. In addition to the tax burden upon the death of farm stakeholders, the proposal adds a tax on gifting assets prior to death, including big-ticket farm assets like machinery and equipment that are often gifted to a successor during a farm transition plan. Under the plan, when gifting things like a tractor or large quantity of grain to a successor, the predecessor would have to indicate he or she is doing so at “fair market value” and report the resulting capital gains. See some of the plan’s details and implications for farmers.