(NAFB) When it comes to passing a farm onto the next generation, capital gains taxes can pack a big punch. Farmland that’s appreciated in value over decades can lead to a hefty tax bill if it is sold or transferred without the right planning. Kelly Wilfert, an extension farm management planning specialist with the University of Wisconsin, says agriculture welcomed a provision in the federal budget that spreads out those capital gains tax payments.
Capital gains can hit hard on land that’s been held in the same family for a long time.
She offered a real-life example of how quickly the gains tax can pile up.
Kelly Wilfert with the University of Wisconsin Extension Service.
