How the Estate Tax Actually Affects Family Farms

In this episode of The Tax Policy Podcast, Lucas and Luna tackle one of the most emotionally charged tax policies: the federal estate tax, commonly called the death tax. They drill into how the tax actually works for family farms and small businesses, using the 2026 exemption amount of $13.61 million per person as a concrete anchor. They explain the portability election, the marital deduction, and the stepped-up basis rule, then walk through a real-world example of a family farm worth $15 million. Lucas unpacks why the vast majority of farms pay zero estate tax, while Luna challenges him on whether the tax still creates burdensome compliance costs. They also touch on the 2018 Tax Cuts and Jobs Act expansion of exemptions and the pending sunset in 2026. The episode closes with a look at how Section 2032A special-use valuation can reduce taxable land value for qualifying farms. A must-listen for anyone confused by the political rhetoric around this tax. #EstateTax #DeathTax #FamilyFarms #TaxPolicy #Economics #FexingoBusiness #BusinessPodcast #LucasAndLuna #EstatePlanning #Section2032A #SteppedUpBasis #PortabilityElection #MaritalDeduction #TaxCutsAndJobsAct #Sunset2026 #SmallBusiness #InheritanceTax #FiscalPolicy Keep every episode free: buymeacoffee.com/fexingo