That's more than four years away, but with gridlock in Washington, experts say it could take years to get legislation through Congress. If lawmakers cannot get legislation passed, it’ll threaten the family farm forever.
The Tax Cuts and Jobs Act includes the estate tax exemption. The Farm Bureaus says the current exemption covers the transfer of assets up to $11.5 million. The Farm Bureau’s John Newton: “And after December of 2025, that amount returns to a $5 million inflation-adjusted level. So, if we don’t get a permanent extension of the $11.58 million, or we go back to a lower exemption level, that really risks the family farm operations across the country,” said Newton.
Estate taxes are a tax on the transfer of property following a death.
“If you have asset values that are above that $11.58 million, those are going to be subject to the estate taxes, which can be as high as 40 percent.”
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