Right. So they don't get the step up in basis without actually paying the tax. Still, having to pay capital gains is likely only 15%. It sucks (and I don't agree with it for a variety of reasons) but I don't think it will force many people to sell that would otherwise hold onto the land.
Capital gains isn't going to stay at 15-20% (see link below). Most working farms/ranches are worth way more than $500K and don't generate much cash flow.
https://protect-eu.mimecast.com/s/ZJRuC27DiRqVJzECnx_5v?domain=app.greenrope.comIt's been a while since I looked at Biden's tax plan but one of his points was drastically raising the capital gains up to the 40 % neighborhood, he also had a provision in there that I took to really limit business deductions for sole proprietorships/S corps where only a fraction of the actual business expenses would be deductibe (something like 25% of the real expense) that's going to hurt a lot of farmers and other small businesses.
