Official Summaries

This resolution supports preserving the stepped-up basis of certain inherited assets (such as land, equipment, or buildings), 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. 

As background, the basis for federal tax purposes of certain inherited assets is reset (or stepped up) from the original cost basis to the fair market value of the asset on the date of the previous owner’s death. Thus, any gain or loss on the subsequent sale of an inherited asset generally is calculated based on the asset’s stepped-up basis (and not the original cost basis).

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 206 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
H. RES. 206

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 10, 2025

Mr. Mann (for himself, Mr. Costa, Mr. Panetta, Ms. Craig, Mr. Smith of 
    Nebraska, Mr. Finstad, Mr. Feenstra, Mr. Meuser, Mr. Latta, Mr. 
 Fulcher, Mrs. Wagner, Ms. Tenney, Mr. Newhouse, Mr. Fleischmann, Mr. 
Alford, Mr. Moolenaar, Mr. Graves, Mr. Lucas, Mr. Self, Mr. Guest, Mr. 
Schmidt, Mrs. Miller of Illinois, Mr. Rose, Mr. Cole, and Mr. Moore of 
Alabama) submitted the following resolution; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                               RESOLUTION


 
 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.

Whereas the stepped-up basis under section 1014 of the Internal Revenue Code of 
        1986 allows recipients of inherited assets such as land, equipment, or 
        buildings to adjust the cost basis of the asset to reflect its fair 
        market value;
Whereas 98 percent of farms are family-owned according to the Department of 
        Agriculture, and 19 percent of all businesses are family-owned according 
        to the Small Business Administration;
Whereas a study conducted by the Economic Research Service of the Department of 
        Agriculture determined that 66 percent of all midsized farms would see 
        an increased tax liability if the stepped-up basis were eliminated;
Whereas the stepped-up basis is a crucial component of many family farms and 
        small business succession plans; and
Whereas the elimination of the stepped-up basis would threaten the ability of 
        farmers, ranchers, agribusinesses, and small business owners to make 
        generational transfers of their operations: Now, therefore, be it
    Resolved, That the House of Representatives--
            (1) supports the preservation of the stepped-up basis;
            (2) opposes any efforts to impose new taxes on family farms 
        or small businesses; and
            (3) recognizes the importance of generational transfers of 
        farm and family-owned business operations.
                                 <all>