Wednesday, September 7th 2016
Courtesy of Brownfield Ag News
An attorney says proposed regulation changes from the Internal Revenue Service could change estate planning for some farming operations. Kristine Tidgren, assistant director of Iowa State University’s Center for Agriculture Law, says if adopted, the rule would impact families owning a controlling interest in a privately held corporation, partnership, or limited liability corporation that exceeds the $5.43-million-dollar estate tax exemption. The IRS says the proposed changes are to prevent taxpayers from giving insignificant interests to non-family members to escape being subject to the rules. Tidgren tells Brownfield if the proposed rules are implemented, they are likely to be challenged. The proposed regulations are currently open to public comment – they close on November 2.