Tax Changes Go Through an Evolution

There’s been many what-ifs when it comes to federal tax changes for farmers this year. As the Senate considers the Build Back Better Act, AgCountry Farm Credit Services Agribusiness Consultant Russ Tweiten says the loss of stepped-up basis is off the table and there aren’t proposed changes in top capital gains taxes. “If Congress passes anything between now and Christmas, it will be last minute to get confirmation. So far, we’ve gone from very radical tax changes to watered down, sensible solutions.” There is one possible tax change for agriculture in the current Build Back Better Act. “There’s a net investment income tax credit. This would add an additional 3.8 percent taxes on income. If you have $500,000 or more in income, you’ll pay those taxes. For many farmers, that’s not a big deal, but if you have an auction sale, there’s an additional tax. We’ll see what happens.”