Could you not incorporate the farm and have the business own the land and buildings? Family members can come and go from the business.
Ownership interest is taxed whether it is direct or indirect.
“Could you not incorporate the farm and have the business own the land and buildings? Family members can come and go from the business.”
Some states do not allow corporate ownership of farms.
In every single case I know about, there were plenty of perfectly legal and reasonable steps that could have been taken before the IRS got involved, but nobody in the business was smart enough -- or motivated enough -- to do it.
In one particular case I know with 100% certainty that a family member of mine begged and pleaded with the business owners to do some basic estate planning and set up some business transition plans while they were still alive. The two brothers who ran the business were great at what they did but were apparently dumber than dirt in every other aspect of life. When one brother died, the business was shut down within two months because the surviving brother didn't want to deal with his sister-in-law as a partner who had no role in the operation of the business.
That's the dirty little secret of many "family farm had to be sold to pay the estate taxes" situations. The family farm doesn't have to be sold to pay the estate taxes. The family farm has to be sold because the tax code exempts the farm from estate taxes as long as the heirs continue to operate the farm, and nobody in the next generation has any interest in farming.
No. Farmer Jones owns the corporation. He dies and leaves it to his son .. The value of the assets of the corporation increased during his lifetime (much of it due to government-created inflation), so under Xiden’s proposal the tax would be owed.
FYI, inflation is exactly why there is a lower capital gains tax. So Xiden and the Communist Dems create more inflation, then eliminate the capital gains tax break...you could not devise a better policy to impoverish millions and make them dependent on the State if you tried.
LLC...I have 4