Exemption(s) for Certain Conveyances of Family Farms or Family Essay

Exemption(s) for Certain Conveyances of Family acquires or Family championship - Essay ExampleFor exception of devour transfer tax for conveyance of farmed vote down from undivided (i.e. Father, bureau A) to Family farm corporation (i.e. Son, Part B (Owner of a Farm Corporation)) regulation 697 specifies the following requirements First the transfer of devour should me made between family members in which part B is the owner of a farm corporation. Second requirement is that after(prenominal) transfer of farmed land the farm corporation will use the land for farming purpose only. No other use of the land is permitted. The first & second requirements of regulation 697 are similar to both man-to-man to individual & individual to Family Farm Corporation. The Third requirement of regulation 697 is different in transferring the farmed land from individual to family farm corporation. In this all share holders of family farm corporation should be related to individual (Part A) who i s transferring the land. Family Farm Corporation should have 95 % farming assets. During determination of farming assets the value of interest in the land being conveyed shall be included as an asset of the corporation.According to this regulation 697- there are both(prenominal) exemptions in land transfer tax that belongs to the same family it means if an individual transfer business land to its family member