This is a non-binding House resolution recognizing the importance of the stepped-up basis under §1014 of the Internal Revenue Code in preserving family-owned farms and small businesses. Stepped-up basis lets heirs reset the cost basis of inherited assets — land, equipment, buildings — to fair market value at the time of death, often eliminating the capital gains tax that would otherwise apply to appreciation during the decedent's lifetime. The resolution cites a USDA Economic Research Service study showing 66% of midsized farms would see increased tax liability if stepped-up basis were eliminated, and notes that 98% of farms are family-owned. It expresses opposition to any new taxes on family farms or small businesses.
Congressional Summary
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).
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-03-10
- Date Added
- 2026-05-08
- Source
- Congress.gov →
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