That's why I worked so hard to include a fair tax policy at the federal level to help make this transition. Based on legislation I introduced, the new tax law will help address these problems, including my efforts to lessen the impact of confiscatory federal estate taxes. To qualify, the farm must be inherited by family members who continue to operate the business for at least 10 years. Many farmers also have explained the terrible barrier posed by an excessive capital gains tax. They say it's preventing older landowners from selling their property to young farmers.
Relief is in store.
The maximum capital gains rate for individuals will be reduced from 28 percent to 20 percent. The new rates are retroactive for sales and exchanges made after May 6, 1997. This page was created and is maintained by the Office of Senator Chuck Grassley.