In order to minimize the impact of burdensome capital gains taxes, farmers and ranchers use a stepped-up basis, which provides a reset for the asset value basis during intergenerational transfers. But over the past few months, we’ve heard quite a bit about the Biden Administration’s tax plan and how any change in capital gains tax policy that eliminates or scales stepped up basis back could result in a massive tax burden on the agricultural sector.
National Cattlemen’s Beef Association (NCBA) Sr. Executive Director of Government Affairs, Danielle Beck, explained to Southeast AgNet how important of an issue this is for agriculture.
The magnitude of the tax burden that would be felt if the stepped up basis is taken away or reduced is something that has many farmers and ranchers concerned.