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While they sound dangerous and everyone (especially politicians) hates them, inheritance taxes are really not a threat to most family farms. Since the American Taxpayer Relief Act of 2012 set a permanent federal estate tax exemption of $5 million per spouse, the “death tax” has ceased to be a threat to 99 percent of American farm families. In fact, that exemption was indexed to inflation, and any unused portion can be transferred to a surviving spouse (that’s called “portability” in the tax code). So for 2016 the total exemption is $10.9 million.
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