Posted 6/30/2020 06:59 (#8344635) Subject: I guess stepped up basis is considered a loophole
By Joe Biden. Hope this post doesn’t get taken down because it’s a big, big deal if he’s elected. He just announced he’ll get rid of it. Currently, stepped up basis contributes a significant portion of lands (or any business for that matter) value, for without it, there is much less incentive to not sell land upon retirement. Many also are not aware that a farmer currently can leave an unlimited amount to his spouse tax free, this includes the value of fully depreciated equipment and unrealized gains in grain held in storage. The taxes placed upon an estate will become extremely burdensome if this provision is also repealed, because taxes would then be owed upon the first to die, leaving the spouse to deal with the repercussions. I hope and pray this doesn’t happen. Just trying to make folks aware of a huge potential financial impact upon your family business. Current exemptions could also get rolled back to possibly as low as $600,000 per person.