From estate taxes to capital gains and cost recovery, House Republicans and President-elect Donald Trump are floating proposals to make significant changes to tax provisions important to farmers and ranchers. Speaking at the 2017 AFBF Annual Convention & IDEAg Trade Show, tax experts discussed the impact of potential tax changes for those involved in agriculture.
Both House Republicans and the president-elect have proposed eliminating estate taxes. However, while the House Republicans haven’t said anything about stepped-up basis — an essential provision for farmers and ranchers — Trump would do away with stepped-up basis for estates greater than $10 million. Trump would also subject transfers at death to the capital gains tax, with protections for small businesses.
“We’re quick to say, ‘Repeal the estate tax.’ But if they impose the capital gains tax where the estate tax would be, then you’ve really just replaced one tax with another. It’s still a transfer tax,” explained Brennis Craddock, CPA, chief operating officer of Tennessee Farm Bureau’s Farmers Service Inc. Craddock was joined on the panel by Pat Wolff, AFBF senior director of congressional relations.
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