S 930 · in committee · significant

A bill to amend the Internal Revenue Code of 1986 to exclude from gross income capital gains from the sale of certain farmland property which are reinvested in individual retirement plans.

What this bill does

Farmers who sell farmland and reinvest the proceeds in an IRA within 60 days can exclude the capital gains from federal income tax.
This applies to farmers actively engaged in farming who buy qualified farmland that was used for farming for at least 10 of the preceding years.
The tax break is permanent unless the farmland is sold or stops being used for farming within 10 years, triggering a retroactive tax plus interest.

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Community Threads

Started by Cosponsor

01
How might this farmland reinvestment tax break affect land prices and affordability for beginning or non-wealthy farmers trying to purchase property?
02
What evidence suggests that excluding capital gains from taxation will increase farmland reinvestment rather than simply reducing taxes for farmers who would have invested anyway?
03
If a farmer's farmland loses agricultural viability due to drought or market collapse within the 10-year period, how does the retroactive tax penalty affect their ability to recover?

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