Farm Hazard: Eliminating Stepped-Up Basis

To help push back on federal legislative proposals to eliminate the use of stepped-up basis in determining capital gains taxes,  American Farm Bureau (AFBF) released analysis this week taking a closer look at what the loss of stepped-up basis would mean for farm and ranch families. Using USDA land value numbers, change in cropland values from 1997 to 2020, and assuming a capital gains tax rate of 20 percent, the analysis not only looks at what the loss of stepped-up basis would mean in terms of per-acre tax, but how long it would take to pay it off. The analysis projects the loss of stepped-up would mean a capital gains tax in Nebraska of nearly $700 per acre.

AFBF Analysis