NRMCA Opposes Proposed IRS Estate Tax Rules
In August, the Internal Revenue Service proposed making it more difficult for family-owned businesses, like many in the ready mixed concrete industry, to transfer assets to future generations. Specifically, the proposed regulation would limit the use of valuation discounts for family-owned businesses that the agency has said have been long abused. The proposal would not amend the tax rate ceiling on estate taxes, but would eliminate existing discounts on the valuation share assets held by the family-owned business, including ready mixed concrete company owners. Currently, the estate and gift taxes on asset transfers for individuals is 40 percent for individuals with assets in excess of $5.45 mil and in excess for couples is $10.9 mil after the death of an owner. Assets valued below that threshold can pass along a business’s assets free of federal estate tax, making this proposal quite cumbersome once finalized.
House and Senate Republican leaders are considering legislation to be included as part of the year-end spending pacakge to block Internal Revenue Service estate tax regulations on valuation discounts. Rep. Warren Davidson (R-OH) has also introduced legislation (HR 6100) to block funding for implementation of this rule should it be promulgated by the IRS. Senator Marco Rubio (R-FL) has introduced a companion bill (S 3436) when Congress returns after the election.
NRMCA supports legislation blocking the IRS from taking away a valuable estate planning tool from ready mixed concrete business owners. We are evaluating the proposed rule and its impact on the industry, and are working with a coalition of business groups in Washington to comment on the regulation.
For more information please contact NRMCA’s Kerri Leininger at email@example.com.