Home Forums Hunting & Shooting Hunter's Campfire Kiss your family farms and businesses goodbye

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.

All this shows the tremendous leverage that control of the food supplies gives you. What if, instead of marching on the capitol, the food supplies into the capitol had been withheld while Congress was trapped in their offices? It is frequently said that to control the government, you have to starve the beast; meaning, reduce the tax revenues going in. (BTW, that doesn't seem to matter does it? They just print whatever money they need to.) But what if the government were literally starving? Even better, cut off the water supply too. I think that would get their attention. In fact, a nationwide strike by the production and transportation workers of this country would open a lot of eyes to the fact that this country won't run on Facebook posts or Google searches.

I know, I know...everybody is in debt and can't afford to go on strike, etc., etc. But something like this is what it's going to take to stop the Left, especially if elections have ceased to be our remedy. Or we can wait until Bill Gates owns the farm and then tell him if he wants a crop this year, to go hire Mike Bloomberg to tend the land.

Wonder if this would apply to all our just WHITE owned property 🤔

Who am I kidding, of course the minority owned property will get special protection!

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.com

I don't know the solution. But please read, Enemies Foreign and Domestic, by Matthew Bracken.

Come again?

The current stepped up basis tax treatment applies not only to real property, but also to other assets subject to capital gains tax, such as company stock. If you bought Amazon at $20 and will it to your kids, THEIR basis for capital gains tax when they sell it is the price at the time of inheritance, avoiding capital gains tax on 90% or more of it's value.

Last I checked, it's the "elite" and not Joe and Suzy with the 7 year car note that own stocks..........

Paying 15% Cap gain taxes is not "a big deal" relatively, when you inherit a couple of million in stocks, but it can present a real cash flow problem with a lot of farms that are already highly leveraged, and have neither the cash nor the credit worthiness to be able to pay 15% on the gain. In many of those cases, the tax may indeed force a sale of the farm, but then, the bank really owned that farm to begin with.

why would a loyal demo want most of the land area of the us owned by the loyal repubs?

It’s also in the plan that capital gains are to be taxed as income. At least that’s what Biden said before he was elected.

Biden wasn't elected. Trump didn't lose.

Been under rock for twenty years? Most people have a 401k or IRA.

This.

Let’s say you inherit 600 acres of prime Iowa farmland. Your dad bought it 40 years ago at $900 an acre. It’s worth about $9k an acre now. You want to farm and make a living doing so, so you have no plans to sell any of it. In fact you really can’t sell any of it because 600 acres is pretty marginal for making a living. Under the rules as they are now, you get a step up in basis and no taxes of any kind if you don’t sell. Under what might happen and is being talked about, you get no step up in basis and owe capital gains tax upon transfer. Your dad got the property for $540k. It is now worth $5.4 million. You owe taxes on $4.86 million. At 15% that is $729,000. At the talked about 39% the Biden administration is possibly proposing $1.53 million. Either sum would force most people to sell at least a portion of the farm which would make it non-viable as a way to make a living. May as well sell it all then.

Agreed.
I have seen major inheritance taxes avoided in two estate cases by the judicious use of LLCs.

I guess we’ll just have to wait and see the mechanics of what all is in the proposal.

All that scchitt is fine but one would be better served dealing with the present and future than looking back at what’s past.

Farms are really vulnerable because they are high dollar items, but most farmers are really middle class and don’t have access to lots of cash to pay taxes and the like.

And don't forget that when things go south, the politicians and heads of bureaus who have passed the laws will be sitting back fat and happy, enjoying life, and laughing heartily at all the worker peasants suffering.

And also, don't forget that Stalin and Mao starved millions and millions of their own people to death.

L.W.

First the Union "working people" now the farmers. Say it ain't so Joe, say it ain't so.

Since I've spent 30 + yrs working for farmers especially in SE Nebraska and SW Iowa the trend hasn't been so much toward the left as there are many Repubs across both states..The ones I know well most likely won't change parties but will vote to protect their family's livelihood which Trump tariffs put in jeopardy..

Come again?

Care to explain how capital gains and stepped up basis treatment applies to 401 (K), 403 (B) and IRA held assets?

Answer: they don't, AND all withdrawals are taxed as INCOME, not as capital gains. So your precious 401 (K) tax treatment can cause an increase in tax obligation by converting capital gains income from the cap. gains rate to the income tax rate, resulting in an increased tax rate as high as 25% of withdrawals. But, it's your money.....