Recognizing the importance of stepped-up basis under section 1014 of the Internal Revenue Code of 1986 in preserving family-owned farms and small businesses.

Key Points

• This resolution asks the House of Representatives to support a tax rule called stepped-up basis. This rule helps people who inherit a family farm or business by resetting the value of the property to what it is worth today instead of what it cost many years ago.
• If this tax rule were removed, people inheriting land or equipment might have to pay very high taxes on the growth in value that happened while the previous owner was alive. This could force some families to sell their farms or businesses just to pay the government.
• The resolution notes that 98 percent of American farms are family-owned. Research shows that more than half of midsized farms would face much higher tax bills if this rule were eliminated, making it harder to keep the business in the family.
• By passing this, the House would officially state that it opposes new taxes on family farms and recognizes how important it is for these businesses to be passed down from one generation to the next.

Impact Analysis

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