OCTOBER 4, 2017 — In a significant victory for family forest owners, the Treasury Department, in response to President Trump’s Executive Order, announced on Monday that the Section 2407 proposed regulations would be withdrawn (view the full release). The proposed changes would have effectively doubled the estate tax valuations for timberland by removing legitimate valuation discounts for estate, gift and generation skipping taxes.
“Today’s announcement is a big win for family forest owners,” said Scott Jones, CEO of the Forest Landowners Association (FLA). “For nearly 20 years, the discounts under section 2407 have been used to protect family business from over taxation at the time of a transfer of shares via death or gift. We applaud Secretary Mnuchin’s leadership on a critical issue for the stewards our nation’s working forests.”
Since the introduction of these proposed regulations in the final months of the Obama Administration, FLA has led the charge in advocating on behalf of family forest owners, partnering with the Family Business Coalition to urge Secretary Mnuchin to withdraw the regulations. For more information on the issue, visit forestlandowners.com/Valuations2704.