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Senior Advisor

Estate Tax Squeeze

The increase in valuation of farm land means many are bumping up against estate tax caps even with $5,000,000 exemptions.  If the exemption drops to $1,000,000, many - perhaps most - farms will be hit with estate taxes.  Iowa State has some suggestions on estate tax planning.

 

http://www.extension.iastate.edu/agdm/wholefarm/html/c4-55.html

 

The paper mentions wasy to use sales or leases to transfer equipment and land, how to use labor to purchase equiopment and so forth.  Worth a read if you are sitting on some high priced ground and wondering how to keep the farm going. 

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Senior Advisor

Re: Estate Tax Squeeze

$5 mil for you and $5 mil for the mrs is not punitive. Nobody favors a $1mil exemption and I expect a would be legislated exemption would be about $2.5 mil for each spouse.

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Senior Advisor

Re: Estate Tax Squeeze

Whether $5 million or $10 million is punitive is your opinion and certainly not shared by everyone on this board.  It may not go to $1,000,000, probably not, but that is you and me guessing.  As it stands, that is what will happen if nothing changes.  People who are interested in passing on their estate are going to optimize their potential and need to consider fact, not preferences.

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Senior Advisor

Re: Estate Tax Squeeze

Face it Jim. Some folks think any tax is punitive.

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