Family Farm Tax Relief Act

Family Farm Tax Relief Act - Amends the Internal Revenue Code to remove all limitations on the estate and gift tax marital deductions.

Repeals the carryover basis provisions enacted by the Tax Reform Act of 1976 which provide that beneficiaries receiving property from a decedent's estate will retain the decedent's basis in the property. Restores prior law which "stepped up" or "stepped down" the property's basis to its market value at the time of death without imposing tax consequences on the appreciation or depreciation the property underwent while held by the decedent.

Values farm property which is transferred as a gift at fair market value at the time of transfer, for purposes of the gift tax.

States that the proposed Internal Revenue Service regulations which provide that the special valuation provisions of the Internal Revenue Code pertaining to farm property shall apply to such property only if the highest and best use of such property is other than use as farm property are inconsistent with the provisions of such section. Directs that such proposed regulations shall not be included in the final regulations.

Subjects nonresident aliens and foreign corporations to a tax on the gain from the sale or exchange of farm or rural lands situated in the United States. Requires foreign corporations which hold United States farm lands comprising 20 percent of their assets to make reports on such holdings as the Secretary of the Treasury may require.