Farmers Face Tax Time Bomb: Act Now!
Thursday, Apr 24, 2025 8:50 am ET
3min read LISTEN UP, FARMERS AND RANCHERS! Your future is on the line, and Congress is playing with fire. The 2017 Tax Cuts and Jobs Act (TCJA) gave you a break, doubling the estate tax exemption to $11 million, indexed for inflation. But guess what? That break is about to EXPIRE! Starting in 2026, the exemption will plummet back to pre-2017 levels—around $5.5 million per individual, indexed for inflation. That's a disaster waiting to happen!
Samantha Ayoub, an associate economist with the American Farm Bureau Federation, spells it out: "Families are already going through a very difficult time when they lose a loved one and are passing the farm on. And so, this adds an additional burden of trying to come up with up to 40 percent of your farm's value to pay the IRS. Most of farm assets come from non-liquid assets, mainly land. So, as land becomes more valuable, even when farms are facing losses, they're now being pushed above that exemption level due to rising land values."
YOU NEED TO ACT NOW! Here’s what you can do:
1. GIFTING STRATEGIES: Give away land or other assets to your heirs while you’re still alive. The annual gift tax exclusion is $18,000 per person, so you can gift to as many people as you want without hitting your lifetime exclusion amount.
2. CREATE A TRUST: Set up an irrevocable or bypass trust to protect your assets. Consult with a legal advisor to structure it correctly.
3. SPEND IT: If you’re financially stable, enjoy your wealth now. Spend down your assets to reduce your estate’s value.
4. SUCCESSION PLANNING: Start planning now. Build a team with your Farm Bureau agent to create a strategy that ensures your farm or ranch stays in the family.
DON’T LET UNCERTAINTY KILL YOUR FARM! Congress needs to act, and you need to be ready. The future of your farm depends on it. Stay informed, stay proactive, and fight for your legacy. BOO-YAH!
Samantha Ayoub, an associate economist with the American Farm Bureau Federation, spells it out: "Families are already going through a very difficult time when they lose a loved one and are passing the farm on. And so, this adds an additional burden of trying to come up with up to 40 percent of your farm's value to pay the IRS. Most of farm assets come from non-liquid assets, mainly land. So, as land becomes more valuable, even when farms are facing losses, they're now being pushed above that exemption level due to rising land values."
YOU NEED TO ACT NOW! Here’s what you can do:
1. GIFTING STRATEGIES: Give away land or other assets to your heirs while you’re still alive. The annual gift tax exclusion is $18,000 per person, so you can gift to as many people as you want without hitting your lifetime exclusion amount.
2. CREATE A TRUST: Set up an irrevocable or bypass trust to protect your assets. Consult with a legal advisor to structure it correctly.
3. SPEND IT: If you’re financially stable, enjoy your wealth now. Spend down your assets to reduce your estate’s value.
4. SUCCESSION PLANNING: Start planning now. Build a team with your Farm Bureau agent to create a strategy that ensures your farm or ranch stays in the family.
DON’T LET UNCERTAINTY KILL YOUR FARM! Congress needs to act, and you need to be ready. The future of your farm depends on it. Stay informed, stay proactive, and fight for your legacy. BOO-YAH!
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