More and more family owned and operated farms are finding that the size of the estate of the patriarch or matriarch of the family exceeds the minimum threshold for federal estate tax liability.
That is especially true since the recent and rapid rise in farmland values. Section 2032A of the Internal Revenue Service Code allows qualified family owned and operated farms to take advantage of a special election that could lower the value of the farmland for estate valuation purposes.
We are very familiar with the details of the fine print of Section 2032A and experienced in preparing these "special use valuations".
Past "special use valuations" have lowered the value of the real estate by 30 - 40%.
In the future, the Section 2032A value will probably be an even lower percentage of the full value because there is "lag effect" built into the calculations.
We'd be happy to provide a free phone consultation.