Schutte says stepped up basis changes need to be stopped

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Schutte says stepped up basis changes need to be stopped

The president of the Missouri Corn Growers Association says any attempt to remove the tax-free stepped up basis in the Biden administration budget proposal must be stopped.

Ag Secretary Vilsack says the proposed changes – as determined by the USDA Economic Research Service – would only impact about two-percent of farms while a Texas A&M study says essentially the opposite.

Jay Schutte tells Brownfield Ag News, “I’d be more inclined to agree with Texas A&M.”

Schutte says the administration is talking about lowering the limit to around $3 Million dollars for the deduction on the inheritance tax, “But it does not take a lot of land to get up to that $3Million plus some equipment and so forth. I think this is a bad move. It needs to be stopped.”

Some analysts say removal of stepped up basis is off the table in a potentially trimmed down reconciliation bill.

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