April 6, 2022, 1:30 PM
WASHINGTON, D.C. | U.S. Rep. Elise Stefanik has cosponsored a bipartisan resolution recognizing the important role of the stepped-up basis in preserving family-owned farms, ranches, and small businesses.
The stepped-up basis is a long-standing provision in the tax code that protects heirs from paying capital gains taxes on inherited assets such as land, equipment, or buildings.
President Biden has proposed changes to this provision that would increase the tax and devastate a generational change in family farms or family-owned small businesses, her office said April 6.
“Our family-owned farms and small businesses are essential to communities in Upstate New York and the North Country,” Stefanik said. “Repealing this critical provision would be devastating to keeping farms and small businesses in the family. I will continue to stand up for our farmers and small businesses against taxes and regulations.”
According to the U.S. Department of Agriculture, 97 percent of farms in New York’s 21st District are family-owned. If the stepped-up basis is eliminated, 66 percent of all mid-sized farms would see an increased tax liability.
Specifically, the legislation:
-Supports the preservation of the stepped-up basis;
-Opposes any efforts to impose new taxes on family farms or small businesses; and
-Recognizes the importance of generational transfers of farm and small business operations.
Last May, Stefanik signed a letter voicing opposition to the elimination of the stepped-up basis in President Biden’s reconciliation plan.
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