Hostname: page-component-cd9895bd7-q99xh Total loading time: 0 Render date: 2024-12-25T18:54:20.776Z Has data issue: false hasContentIssue false
  • English
  • Français

Estate Tax Reduction Through Section 2032A Use Valuation

Published online by Cambridge University Press:  10 May 2017

Terence J. Centner  and
Archie Flanders
Terence J. Centner
Affiliation:
Department of Agricultural Economics, University of Georgia, Athens
Archie Flanders
Affiliation:
Department of Agricultural Economics, University of Georgia, Athens
Get access

Extract

The Economic Recovery Tax Act of 1981 (ERTA) provides a gradual increase in the unified credit which by 1987 will exempt estates of up to $600,000 from estate taxation. The unlimited marital deduction and the increase of tax-free gifts to an amount of $10,000 per year per donee has freed many farm families from the gift and estate tax burdens that arguably had been causing the break-up of small farms (U.S. Congressional Record, vol. 122; Begleiter). At the same time, however, the estate tax relief resulting from the provisions incorporated in ERTA has not completely remedied the tax problems of farmers. Farm estates greater than $600,000 are still subject to taxation. Expensive technology together with inflation and the appreciation of the value of farm real estate will undoubtedly continue to cause the value of many farm holdings to increase in size beyond the amount exempted by the uniform tax credit. The resultant estate tax liability could require the sale of farm assets in order to raise cash to pay these taxes. Thus, estate planning techniques which diminish estate taxation are still important to farmers.

Type
Contributed Papers
Information
Journal of the Northeastern Agricultural Economics Council , Volume 12 , Issue 2 , Fall 1983 , pp. 105 - 108
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Begleiter, M.D. “Section 2032A: Did we Save the Family Farm?” Drake Law Review, 29 (1979): 15–111.Google Scholar
Boisvert, R. N., Dills, N. L. and Solomon, R. “Evaluation of Farmland Use-Value Assessment in New York.” Journal of the Northeastern Agricultural Economics Council, 9 (1980): 17–22.Google Scholar
Bratton, C.A. Management Study of Growing Corn on New York Dairy Farms, 1980, A.E. Res. 82–15, Department of Agricultural Economics, Cornell University, August 1982.Google Scholar
Bravenec, L.L. and Olsen, A.J. “Special Use Valuation Less Restrictive, More Beneficial After Changes by 1981 Act.” The Journal of Taxation, 55 (1981): 232–236.Google Scholar
Dunne, James F. Establishment of Final 1982 Agricultural Use Values. New York State Board of Equalization and Assessment, Albany, New York, April 1982.Google Scholar
Dunne, James F. and Boisvert, Robert N. An Empirical Evaluation of Alternative Procedures for Determining Agricultural Use Values in New York, A.E. Res. 82–10, Department of Agricultural Economics, Cornell University, March 1982.Google Scholar
Harl, Neil E. Agricultural Law, vol. 5. New York: Matthew Bender, 1982.Google Scholar
Harl, N.E. “Special Use Valuation: An Exercise in Fence Building.” American Bar Association Journal, 68 (1982): 50–53.Google Scholar
Hartley, H.B. “Final Regs. Under 2032A: Who, What and How to Qualify for Special Use Valuation.” The Journal of Taxation, 53 (1980): 306–312.Google Scholar
Hartley, H.B. “Section 2032A Regs. Detail Special Use Valuation Methods, How to Make the Election.” The Journal of Taxation, 53 (1981): 364–367.Google Scholar
Knoblauch, Wayne A. and Milligan, Robert A. Economic Profiles for Corn, Hay and Pasture; 1980 and Five-Year Average 1976–80, Department of Agricultural Economics, Cornell University, October 1981.Google Scholar
McKinney's Consolidated Laws of New York, Agriculture and Markets Law. St. Paul, Minn.: West Publishing Co., 1972 and Supp. 1982.Google Scholar
Mueller, John III. “Maintaining Eligibility for Section 2032A Use Valuation.” Agricultural Law Journal, 3 (1981): 645–670.Google Scholar
Osach, R.C. “Economic Recovery Act Changes Enhance the Benefits of Electing Special Use Valuation.” Estate Planning, 9 (1982): 90–94.Google Scholar
Shaffer, A.B. “Section 2032A: Use Valuation Election for Qualified Real Property.” Colorado Lawyer, 10 (1981): 285–290.Google Scholar
Smith, Stuart F. Dairy Farm Management: Business Summary New York 1981, A.E. Res. 82–24, Department of Agricultural Economics, Cornell University, September 1982.Google Scholar
Snyder, Darwin P. Cropland Rental Rates in New York State 1981, A.E. Res. 82–5, Department of Agricultural Economics, Cornell University, January 1982.Google Scholar
Thomas, H.H. “Special Use Valuation Checklist.” Agricultural Law Jouurnal, 3 (1981): 28–99.Google Scholar
U.S. Congressional Record, vol. 122 (1976), p. 25944.Google Scholar