Why don’t these families incorporate their farms? Wouldn’t that allow them to keep the farm going from generation to generation without having to pay a death tax?
Because someone has to own the corporation, and when they die the value of to portion of the corporation that they own is subject to the estate tax.
Incorporation? That’s exactly what’s done in the People’s Republic of Maryland to avoid the taxes on the transfer of real estate.
Incorporate, contribute your home in exchange for stock, sell the home through a sale of the stock and avoid the real estate transfer fees!