Congresswoman Liz Cheney (R-WY) joined more than 70 of her colleagues in introducing a bipartisan resolution recognizing the important role of the stepped-up basis in preserving family-owned farms, ranches, and small businesses. A long-standing provision in the tax code, the stepped-up basis prevents heirs from paying capital gains taxes on inherited assets such as land, equipment, or buildings. Cheney said the stepped-up basis is an important provision of our tax code that helps ranchers, farmers and small businesses pass their assets on from generation to generation. She said our agriculture industry and small businesses have suffered during this pandemic, and should not be saddled with more government overreach and higher capital gains taxes.
According to information from the U.S. Department of Agriculture, 98 percent of all farms are family-owned. If the stepped-up basis is eliminated, 68 percent of all mid-sized farms would experience an increased tax liability. The resolution is supported by the National Cattlemen’s Beef Association, American Farm Bureau Federation, National Corn Growers Association, American Soybean Association, USA Rice, National Grange, and National Council of Farmer Cooperatives.
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Last modified: April 14, 2022