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.

Bill 119 HRES 206, also known as the "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 that highlights the significance of the stepped-up basis provision in the Internal Revenue Code in protecting family-owned farms and small businesses.

The resolution emphasizes that the stepped-up basis provision, which allows heirs to value inherited assets at their current market value rather than the original purchase price, plays a crucial role in preventing the forced sale of family-owned farms and small businesses due to high estate taxes. By adjusting the basis of inherited assets to their current value, heirs are able to avoid paying capital gains taxes on the appreciation of the assets during the original owner's lifetime.

The resolution acknowledges that family-owned farms and small businesses are often passed down through generations, and the preservation of these enterprises is essential for maintaining economic stability and promoting generational wealth. Without the stepped-up basis provision, heirs may be forced to sell off assets to cover the high tax burden, potentially leading to the dissolution of these businesses. In recognizing the importance of the stepped-up basis provision, the resolution calls for continued support and protection of this provision to ensure the preservation of family-owned farms and small businesses for future generations. It highlights the need for policymakers to consider the impact of estate taxes on these enterprises and to implement policies that support their continued success and longevity.