Issue 27.10
If passed, H.R. 3524 would spare some heirs from estate taxes:
An interesting bill on the back burner of Congress:
Last summer, Reps. Mike Thompson (D-CA) and John Salazar (D-CO) co-sponsored H.R 3524, The Family Farm Preservation and Conservation Estate Tax Act. H.R 3524 would exempt farms and ranches from estate taxes provided the land keeps being used for farming or ranching or has a conservation easement.1
The bill was referred to the House Committee on Ways and Means last summer, and as equilibrium returns to Congress, perhaps its momentum will resume.2
A way to address a huge problem:
Usually, farm families have to sell part or all of their acreage just to pay estate taxes. This has been a factor in the decline of the family-owned farm or ranch in America. It has also hurt rural economies, impacted food production, and affected stewardship of rural lands.
A return to pre-EGGTRA estate tax levels in 2011 would definitely make the problem worse. Even if Congress follows the President’s preference and estate taxes return to 2009 levels in 2011, you have a tax condition that offers no incentive for a family to keep ranching or farming.
A union of interesting allies:
The Environmental Defense Fund (a conservation lobby) and the Public Lands Council (a ranching and farming lobby) are united in support of H.R. 3524. The California Cattlemen’s Council and the Land Trust Alliance are also on board with the bill, as well as two dozen more farming organizations.3
Help keep the momentum going:
As Congress put aside just about everything else (including the estate tax) to focus on health care reform, this was one of many important pieces of potential legislation that was set aside for the time being. Contact your local Senator or Representative to show them your interest in the bill today.
Scott S. Lovell is the founder of Lovell Hathaway, Your Retirement SpecialistSM , and is a registered representative offering securities and advisory services through Geneos Wealth Management, Inc. Member FINRA and SIPC. For additional information, Scott can be reached at (435) 656-2518.
Securities and advisory services offered through Geneos Wealth Management, Inc. Member FINRA/SIPC
This article was written by Peter Montoya Inc., not the named Representative or Broker/Dealer, and should not be construed as investment advice. Neither the named Representative nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information.
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Citations.
1 edf.org/pressrelease.cfm?contentID=10353 [8/20/09]
2 thomas.loc.gov/cgi-bin/bdquery/z?d111:h.r.03524: [8/20/09]
3 cfbf.org/agalert/AgAlertStory.cfm?ID=1375&ck=70FEB62B69F16E0238F741FAB228FEC2 [9/2/09]