Vilsack Confirms Stepped-Up Basis for Family Farms Safe

LUBBOCK, TX – Despite concerns being raised by some commodity groups and agricultural reporters, President Biden’s tax plan, to pay for his infrastructure bill, will not eliminate the stepped-up basis for farms and ranches.

Speaking during an interview with All Ag News, Agriculture Secretary Tom Vilsack said first there will be no changes to the current estate tax which allows for the transfer of the first $11 million of an estate at death, tax-free, to the family heirs.

LISTEN: AgriBusiness Report with Secretary of Agricultre Tom Vilsack

Second, Vilsack explained, if the children want to continue operating the farm or ranch then there would be no stepped-up basis issue. If they did decide to sell the farm, then there would be an exemption on the first $1 million per person, so could cover the first few million of gains tax-free.

“Between those two issues,” the Secretary explained, “that covers 98.5 percent of the farms in the country so folks don’t need to be concerned about their ability to make sure their family continues to farm.”
(SOURCE: All Ag News)