Effect on family farms of changing capital gains taxation at death

The American Families Plan (AFP)—announced on April 28, 2021, by President Joe Biden—proposed changing the treatment of capital gains taxation on inherited assets.1 Information used to develop this report comes from the White House Fact Sheet2 and a USDA press release.3 The proposed changes in AFP would make accumulated gains (in asset value) subject to capital gains taxation at death whereas—under current law—these gains can be passed on to heirs without being subject to capital gains taxation.

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