Recognizing the importance of stepped-up basis under section 1014 of the Internal Revenue Code of 1986 in preserving family-owned farms and small businesses.

This resolution supports the preservation of the stepped-up basis tax rule that allows recipients of inherited assets such as land, equipment, or buildings to adjust the cost basis of the assets to reflect their fair market value. The resolution opposes any efforts to impose new taxes on family farms or small businesses and recognizes the importance of generational transfers of farm and family-owned businesses.

Bill 118 HRES 237, titled "Recognizing the importance of stepped-up basis under section 1014 of the Internal Revenue Code of 1986 in preserving family-owned farms and small businesses," is a resolution introduced in the US Congress. The resolution acknowledges the significance of the stepped-up basis provision in the Internal Revenue Code, specifically under section 1014, in protecting family-owned farms and small businesses.

The stepped-up basis provision allows heirs to value inherited assets at their current market value, rather than the original purchase price. This can result in significant tax savings for families passing down farms and businesses to the next generation. By recognizing the importance of this provision, the resolution aims to highlight the role it plays in preserving these types of enterprises and ensuring their continued success.

The resolution emphasizes the unique challenges faced by family-owned farms and small businesses, including the potential burden of estate taxes. It acknowledges that the stepped-up basis provision can help alleviate some of these challenges and facilitate the smooth transition of ownership from one generation to the next. Overall, Bill 118 HRES 237 underscores the importance of maintaining the stepped-up basis provision in the Internal Revenue Code to support the long-term viability of family-owned farms and small businesses. It serves as a reminder of the critical role that tax policy plays in preserving these important sectors of the economy.