![]() The individual is a lineal descendent of the taxpayer.The individual is related to the taxpayer by consanguinity or affinity within the second degree as determined by common law.The taxpayer has held the real property used in a farming business which is sold to a relative of the taxpayer.įor purposes of this provision a relative is a person satisfying one of the following conditions:.If the taxpayer is a retired farmer, the taxpayer is considered to meet the material participation requirement if the taxpayer materially participated in a farming business for ten years or more in the aggregate, prior to making the single life-time election. Taxpayer has materially participated in a farming business for a minimum of 10 years and held real property used in a farming business for 10 years.Taxpayers may subtract, to the extent included, the net capital gain from the sale of real property used in a farming business if one of the following conditions are satisfied: Sale of Real Property Used in a Farming Business Net capital gains from the sale of specific farming related property may qualify for the capital gains deduction. Not eligible for the election even if net income passes through to an eligible individual.Partnership, S Corporations, Trusts, and Estates Allocate their combined annual exclusion limit to each spouse in the proportion that each spouse's respective net income from a farm tenancy agreement bears to the total net income from a farm tenancy agreement.Married individuals who file separate returns: ![]() Individuals who elect to exclude income from a farm tenancy agreement shall not claim the following in the year in which the election is made or in any succeeding year: Must be a party to a farm tenancy agreementĪ farm tenancy agreement is a written agreement outlining the rights and obligations of an owner-lessor and a tenant-lessee where the tenant-lessee has a farm tenancy as defined in Iowa Code section 562.1A.Can no longer materially participate in a farming business.Must be55 years of age or older or disabled at the time of the election.Must have materially participated in the farming business for 10 or more years.The real property must have been held by the eligible individual for 10 or more years. ![]()
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