Good news for heirs who transfer inherited farm property to family members: The transfer isn’t a disposition jeopardizing an estate tax valuation break. A man died and left farm property to his daughter, and upon her death, his grandkids. His estate took advantage of a special rule valuing farmland for estate tax purposes at its current use instead of fair market value. Less than 10 years later, the grandson has proposed selling his remainder interest in the farm property to his mother. This transfer won’t trigger recapture of the estate tax savings, IRS privately rules.
For 2017 deaths, up to $1,120,000 of farm or business realty gets discount valuation.

Inherited Property

by | Dec 5, 2017 | Tallahassee Tax Service, TallyTaxMan | 0 comments