Texas Farm & Ranch Properties - Geni Manning Real Estate

(WABI WACM) The House of Representatives has passed the "One Big, Beautiful Bill", a sweeping tax reform package that marks a major legislative victory for America’s agricultural community, especially cattle producers and family-run farms.

Permanent Death Tax Relief: A cornerstone of the bill is the permanent estate tax exemption, set at $15 million per individual and $30 million per couple. This critical change ensures that agricultural families can transfer land and businesses to the next generation without the looming threat of a crushing tax burden.

Step-Up in Basis Preserved: The legislation also preserves the step-up in basis rule, allowing heirs to inherit property at its market value at the time of transfer. This provision helps reduce capital gains taxes and simplifies the estate planning process, offering much-needed clarity and financial consistency for producers.

Stability for Small Agricultural Businesses: The bill permanently enshrines the Section 199A 20% deduction, originally enacted under the 2017 tax reforms. This deduction benefits pass-through agricultural businesses by lowering taxable income and preserving capital for reinvestment.

Investment Incentives Expanded: In a further boost to productivity and modernization, the legislation:

• Raises Section 179 expensing to $2.5 million, allowing immediate deduction of machinery and equipment costs.

• Restores 100% bonus depreciation for qualifying property, encouraging investment in operational upgrades.

A Win for Rural America: President Donald Trump signed the bill into law, sealing what advocates call a monumental win for rural economies. Supporters argue the bill offers a framework for long-term economic stability and generational sustainability in American agriculture.