Preserving Family Farms Act of 2023

Preserving Family Farms Act of 2023

This bill amends the Internal Revenue Code to increase to $13 million (currently, $750,000) the limitation on the special use valuation for farmland or other trades or businesses for estate tax purposes. The increased amount is adjusted for inflation for estates of decedents dying after 2023.

The Preserving Family Farms Act of 2023, also known as Bill 118 hr 4937, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to provide relief to family farms facing estate tax burdens by allowing them to defer payment of estate taxes for up to 15 years.

Under current law, family farms are often forced to sell off assets or even the entire farm in order to pay estate taxes upon the death of a family member. This can be particularly challenging for small family farms that may not have the liquid assets needed to cover these tax obligations.

The Preserving Family Farms Act seeks to address this issue by allowing family farms to defer payment of estate taxes for up to 15 years, as long as the farm remains in operation and is not subdivided or developed. This would provide much-needed relief to family farms, allowing them to continue operating without the financial burden of estate taxes. In addition to the estate tax deferral provision, the bill also includes measures to simplify the valuation of farmland for estate tax purposes and to provide additional flexibility for family farms in meeting estate tax obligations. Overall, the Preserving Family Farms Act of 2023 aims to support and protect family farms by providing them with the tools and resources needed to navigate the complexities of estate taxes and ensure the continued viability of their operations for future generations.