H.Res. 206 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Ways and Means, Mar 10, 2025
What this bill does
In plain words · AI-written from the official summarySupports tax benefits for inherited farms and businesses
This resolution supports keeping a tax rule called stepped-up basis, which applies to inherited assets like farmland or equipment. Here's how it works: when someone passes down a farm or business, the tax value of those assets gets reset to what they're worth on the day of the owner's death, rather than what the original owner paid for them. The resolution opposes any new taxes that might change this rule for family farms and small businesses.
How it affects you
This resolution directly matters to people who own family farms or small businesses and plan to leave them to their children or heirs. The stepped-up basis rule can lower the taxes their families owe when they inherit and later sell these assets. However, this is a resolution expressing support for a tax principle, not a law that changes anything by itself.
Read the official summary (Introduced in House, Mar 10, 2025)
This resolution supports preserving the stepped-up basis of certain inherited assets (such as land, equipment, or buildings), opposes any efforts to impose new taxes on family farms or small businesses, and recognizes the importance of generational transfers of farm and family-owned businesses.
As background, the basis for federal tax purposes of certain inherited assets is reset (or stepped up) from the original cost basis to the fair market value of the asset on the date of the previous owner’s death. Thus, any gain or loss on the subsequent sale of an inherited asset generally is calculated based on the asset’s stepped-up basis (and not the original cost basis).
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH.Res. 206
RESOLUTION
Recognizing the importance of stepped-up basis under section 1014 of the Internal Revenue Code of 1986 in preserving family-owned farms and small businesses.
Sponsor: Rep. Tracey Mann (R-KS-1) · Introduced Mar 10, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Mar 10, 2025: “Referred to the House Committee on Ways and Means.”