What the STEP Act might mean for agriculture and estate planning agweek.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from agweek.com Daily Mail and Mail on Sunday newspapers.
By Congressman Bob Latta (R OH5)
One of the most plainly unfair taxes in the entire U.S. tax code is the Estate Tax also known as the “death tax.” Even though American families pay taxes their entire lives income taxes, payroll taxes, Medicare taxes, capital gains taxes and more the federal government can’t help but reach its hands into their pocket one last time after they die to grab 40% of their hard-earned money.
The death tax creates real world problems for farmers, ranchers, and small business owners groups we can least afford to penalize during this economic recovery. In sectors that require high capital investments, like agriculture, families often have difficulty meeting tax requirements imposed by the death tax because their cash assets are much lower than the value of land, property, and equipment. In addition to the costs imposed at death, the death tax also has a stifling economic impact beforehand due to the cost preparation and planning need
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Much attention has been paid in recent weeks to President
Biden s infrastructure plan as well as its key sources of
funding, including, among other things, raising the corporate tax
rate. In the shadow of this legislation, two bills have recently
been introduced in the Senate that would take direct aim at current
wealth transfer planning techniques. While neither bill is likely
to survive in its current form, a recent ruling by the Senate
parliamentarian has made imminent estate tax reform more likely.
These proposals, their effective dates and the possible timeframe
An overview of potential changes and tax planning actions for clients to consider.
There’s been a lot of coverage of President Joe Biden’s proposed changes to the tax laws, including reducing the federal estate tax exemption and eliminating the step-up income tax basis rules. But recently, some senators have come out with bills that seek to make drastic changes to the tax laws, including the estate tax. Reviewing some of these potential tax law changes can help practitioners better equip their clients with planning strategies to consider now and before the end of 2021. Here’s a brief review.
Mansion Global
What U.S. Policies Could Affect the House I Want to Leave My Children?
The Biden administration might scrap a highly lucrative rule for heirs of real estate, while Senate Democrats have another proposal By V.L. Hendrickson |
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Every week, Mansion Global poses a tax question to real estate tax attorneys. Here is this week’s question.
Q. I m doing some estate planning. Are there any changes under consideration that could affect the property I m planning to leave to my children?
A. A bill that would change the way estates are taxed was proposed by several U.S. senators on Monday.