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Aderholt Legislation to Help Farmers at Retirement

Date: Nov. 10, 2005
Location: Washington, DC
Issues: Agriculture and Food


ADERHOLT LEGISLATION TO HELP FARMERS AT RETIREMENT

"This legislation will help our farmers have more options when they are ready to retire," said Congressman Aderholt.

WASHINGTON, DC -- Congressman Robert Aderholt (R-Haleyville) today announced that he recently introduced the Farmers Tax Deferral Act (H.R. 4221), which would amend the Internal Revenue Code of 1986 to allow farmers to trade single purpose farm structures for a home at retirement without requiring them to immediately pay a capital gains tax. The tax would be deferred until the sale of the property for which the farm was traded. This measure would enable farmers to retire and sell their land to new farmers without excessive tax burden.

"This legislation will help out the retiring farmer and encourage new involvement in the farming industry. Current tax law makes it difficult for farmers to sell their farms when they are ready to retire. Tax burdens keep them working longer than they want and makes fewer farms available for those trying to get started," said Congressman Aderholt. "This legislation will ease that burden and give farmers more options."

This legislation would greatly benefit those farmers who utilize single purpose structures and equipment on their farm, such as poultry farmers, dairy farmers, alpaca farmers, and nursery farmers. A single purpose agricultural structure is any building or enclosure specifically designed, constructed, and used to house, raise, and feed a particular type of livestock and its produce. Structures used to house the equipment needed to raise, house, or feed the livestock are also considered single purpose structures. The term also applies to greenhouses that are specifically designed, constructed, and used for the commercial production of plants and mushrooms.

"Farming is a vital part of the Fourth District. Farmers deserve the benefit of retiring without excessive tax burden and being able to pass their farm on to a new generation of farmers. This legislation will help do just that," added the congressman.

http://www.house.gov/apps/list/press/al04_aderholt/PR051110.html

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