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| Thanks for answering. It could be a complete disaster for some farms. Especially if someone has to buy out a couple of siblings along with paying the tax and capitol gains on everything. There could be cases where an heir could own $8,000 an acre on land that they inherited that was paid off and also owe a bunch of money on equipment that the family inherited. It is going to take some good planning to keep a farm in the family.
We are just talking federal tax here also. I would guess there will be states that follow the federal tax laws and some states will probably have their own separate capitol gains tax on top of the federal tax. There could end up being a bunch of farms sold because they wont cash flow after they inherit some land and equipment. Lets hope this doesn't go as bad as it sounds.
Edited by vulcan900 1/12/2021 09:26
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Stepped up basis... again
