Harris....wants worlds Highest Death Tax

[Boiler Buck]

Most of you likely do not understand what a problem this is for farmers and ranchers.

Most of them just eek out a living and want nothing more to pass their farm on to the next generation as a family farm.

Their land has skyrocketed in value under the last 3 Presidents. Their costs of production is also out of control now under Biden. But with land so high, large farms easily would be caught up in K2's death tax scheme.

Many of these would need to be sold because of K2.

Kamala Harris wants America to have the world's highest death tax

Kamala Harris wants America to have the world's highest death tax

The real-world impact of death taxes this high is that older people will avoid the death tax by lavishly spending down the family estate so that there is no money left to tax.

www.foxnews.com

 

[Indy_Rider]

That's rough, but also, most farmers I know are setup as an LLC with their family part of it. So, if they plan on "passing the farm down" it's just a matter of someone else taking over managing the day-to-day operations and the LLC remains.

Now I'm also not a business expert, so I am sure someone could explain that better than I did.

This is getting really close to putting a hurt on me though as there is just enough left of our old family farm that Warren's idea would have us potentially right on the edge of. None of us actively farm anymore and the land is to be sold off and split up.

Most of our farm was sold off in the 90s as my father lost a ton on hogs, like a lot of area farmers and was forced to sell off a lot of the land to cover debt. Also used the excuse that it was too much work for just him once I left for college, though I later learned the truth that he financially had to. At one point, I wanted to take over the farm but lost interest towards the end of high school, not because I thought it was hard work, never thought, more of that it was just to freaking boring for me. Spending days on end on a tractor working ground just wasn't something I was interested in anymore. I still will occasionally spend a day helping the people who rent the ground now (long time family friends) and that cures any romance I have on the thought because it is so boring. Even worse with the tractors now driving themselves.

 

[Boiler Buck]

That's rough, but also, most farmers I know are setup as an LLC with their family part of it. So, if they plan on "passing the farm down" it's just a matter of someone else taking over managing the day-to-day operations and the LLC remains.

Now I'm also not a business expert, so I am sure someone could explain that better than I did.

This is getting really close to putting a hurt on me though as there is just enough left of our old family farm that Warren's idea would have us potentially right on the edge of. None of us actively farm anymore and the land is to be sold off and split up.

Most of our farm was sold off in the 90s as my father lost a ton on hogs, like a lot of area farmers and was forced to sell off a lot of the land to cover debt. Also used the excuse that it was too much work for just him once I left for college, though I later learned the truth that he financially had to. At one point, I wanted to take over the farm but lost interest towards the end of high school, not because I thought it was hard work, never thought, more of that it was just to freaking boring for me. Spending days on end on a tractor working ground just wasn't something I was interested in anymore. I still will occasionally spend a day helping the people who rent the ground now (long time family friends) and that cures any romance I have on the thought because it is so boring. Even worse with the tractors now driving themselves.

Yes via estate management things can go better. So great point.

But when you estate plan under a certain set of known conditions, and the Govt then changes the terms of the deal then perhaps additional planning/lawyer expenses are needed.

Having to go to an LLC has its great advantages, one you pointed out is a great one, but it also has disadvantages. So those need weighed out per farm and family goals.

 

[Indy_Rider]

Yes via estate management things can go better. So great point.

But when you estate plan under a certain set of known conditions, and the Govt then changes the terms of the deal then perhaps additional planning/lawyer expenses are needed.

Having to go to an LLC has its great advantages, one you pointed out is a great one, but it also has disadvantages. So those need weighed out per farm and family goals.

Yeah, all the ones I know use a CPA and Law firm to advise them. So added expense, yes, but they are always looking for advantages anyways and paying for it. The firms usually can find enough that it more than pays for their services.