HR 1259 would permanently repeal the Federal Estate Tax and Generation Skipping Tax. It also would maintain the current “step-up” treatment of capital gains, an issue of concern to many farmers.
It will be interesting to see if a bi-partisan effort will result in long-term decisions regarding the estate tax. The current law ends December 31, 2012; under the law the federal estate tax exemption level would return to $1 million on January 1, 2013.
No mater where you fall on whether to have an estate tax, operating without knowledge of future levels makes planning difficult for most clients.