No Capital Gains Tax on Family Farms Act

Key Points

• This bill would stop the government from taxing the profit when a farmer sells their land to a family member. Right now, if a farm has increased in value over many years, the owner might owe a lot of money in taxes when they try to pass it down to their children.
• To get this tax break, the land must have been used as a farm for at least two out of the last eight years. The buyer must be a close relative like a spouse, child, grandchild, or sibling.
• This change is meant to help keep family farms in the family. Many farmers worry that high taxes make it too expensive for the next generation to take over the business, which can lead to farms being sold to large corporations instead.
• If the relative who buys the farm holds onto it for at least 10 years, they get an extra tax advantage. This helps ensure the land stays a working farm for a long time rather than being sold quickly for a profit.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.