Bill > HF778

This bill allows for a capital gain deduction on the sale of real property used in a farming business. The key provisions are: 1) It defines "farming business" as the production, care, growing, harvesting, preservation, handling, or storage of crops, forest or fruit trees, livestock, or horticulture, all for intended profit. 2) It defines "real property used in a farming business" to include land, improvements, and structures used primarily for farming, such as storage for machinery, crops, or inputs. 3) It allows a capital gain deduction if the taxpayer has materially participated in the farming business for at least 10 years and held the real property for at least 10 years, or if the real property is sold to a relative of the taxpayer. The bill is effective July 1, 2019.

Budget and Finance

Ways and Means (House)

https://www.legis.iowa.gov/legislation/BillBook?ga=88&ba=HF778