summary
Introduced
In Committee
Crossed Over
Passed
Dead
Introduced Session
112th Congress
Bill Summary
Saving the Family Farm Act of 2012 - Amends the Internal Revenue Code to exclude from the gross estate of a decedent the adjusted value of any qualified family-owned farm or business (i.e., a qualified farmland or a qualified trade or business) included in the estate. Requires: (1) the decedent to have been a citizen or resident of the United States at the time of death, (2) the decedent and members of the decedent's family to have owned not less than 60% of such farm or business in any 5-year period during the 8-year period prior to the decedent's death, and (3) material participation in the operation of the farm or business by the decedent and members of the decedent's family. Defines "qualified farmland" as any real property located in the United States that is used as a farm for farming purposes. Defines "qualified trade or business" as any interest in a trade or business that is not an interest in a C corporation and that was acquired from or passed from the decedent to an heir. Imposes a recapture tax on an heir who disposes of any interest in a qualified family-owned farm or business or who ceases to use qualified farmland for farming purposes after inheriting such property.
AI Summary
This bill, the Saving the Family Farm Act of 2012, aims to reduce the estate tax burden on family-owned farms and businesses by allowing the adjusted value of such assets to be excluded from a deceased person's gross estate. To qualify for this exclusion, the decedent must have been a U.S. citizen or resident, and for at least five years within the eight years before their death, the decedent and their family must have owned at least 60% of the farm or business, with the decedent or a qualified heir actively participating in its operation. "Qualified farmland" is defined as U.S. real property used for farming, while a "qualified trade or business" refers to an interest in a business (not a C corporation) passed from the decedent to an heir. Importantly, if an heir disposes of their interest in the qualified family-owned farm or business, or if qualified farmland is no longer used for farming purposes after being inherited, a recapture tax will be imposed on that heir.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Read twice and referred to the Committee on Finance. (on 03/15/2012)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/112th-congress/senate-bill/2200/all-info |
| Bill | http://gpo.gov/fdsys/pkg/BILLS-112s2200is/pdf/BILLS-112s2200is.pdf.pdf |
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