because they’ve experienced much higher land val- ues. Infl ation and the economy have increased their net worth to a point higher than what they thought was conceivable.” Until Jan. 1, 2013, the assessment against inher-
ited property — roundly criticized by the National Cattlemen’s Beef Association (NCBA) and others as the “death tax” — had literally been in limbo for 12 years. In 2001, the personal exemption was $1 million,
and the tax rate on property above the exemption was 55 percent. That year Congress passed a series of tax cuts, one of which phased out the estate tax over 10 years, but didn’t have the budget room to
permanently eliminate it. If not for the 2-year deal reached between lawmakers and President Obama during the 2010 lame duck session, the tax would have reverted to 2001 levels. Congress and the President faced the same di-
lemma at the end of 2012. For the previous 2 years, the exemption had been $5.12 million for an indi- vidual, twice that for a couple, and the tax rate over that amount was 35 percent. Without a new agreement, the 2001 levels would
have once again become law. But at the last minute — or really, a few hours after the last minute, on New Year’s Day — a solution to the estate tax, and many other unresolved tax issues, became part of
It would be in the producer’s best interest to retain a tax accountant and to educate himself on what the IRS is going to look at.