Bill > S930

This bill amends the Internal Revenue Code to provide a tax benefit for farmers selling farmland by allowing them to exclude capital gains from their gross income if those gains are reinvested in an Individual Retirement Plan (IRA). Specifically, the bill creates a new provision that permits taxpayers to exclude from gross income the gain from selling "qualified farmland property" (land used for farming purposes for at least 10 years) to a "qualified farmer" (an individual actively engaged in farming), up to the amount contributed to an IRA within 60 days of the sale. If the qualified farmer subsequently sells the farmland or stops using it for farming within 10 years, they will be required to pay back taxes on the previously excluded gain, calculated at the highest capital gains tax rate plus applicable interest. The bill also increases the standard IRA contribution limit by the amount of farmland sale gains, allowing farmers to potentially contribute more to their retirement accounts. This legislation aims to support agricultural landowners by providing a tax incentive that encourages reinvestment of farmland sale proceeds into retirement savings, while ensuring the land continues to be used for agricultural purposes.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/930/all-info