Posted 11/7/2012 21:28 (#2684871) Subject: Inheritance tax on Farmland ?
I'm a young farmer and I have never dealt with Inheritance tax on farmland before. Reading some of these posts have got me thinking about my Family farm and how tax rate is put back at a $1 million exemption. My Grandma is 86 and is in the nursing home with some alzheimers but her health is still very good just not her memory.ok For example My family farm is 738 acres the land was reappraised in 2010 at 3000 an acre when my grandpa died. Now land is selling in the area for around 5000 an acre. Would we have to pay inheritance tax on the difference or the 2013 appraised value. So at 2000x738=$1476000. minus the exemption of 1 million would mean the difference $476000. Right so would we pay @ 55% tax rate $261800 Just to keep farming our own land. That is insane. All of this land has been in my family for over 100 years. It is really hard for me to imagine paying this tax just to keep what is ours. Is there anyway to protect ourselves from loosing what is ours before 2013 or when that time comes we just pucker up. Thanks for any help. and if i'm wrong please redirect me.