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.

This bill lets people avoid paying federal capital gains tax when they sell farmland to an active farmer, as long as they put the money from the sale into an individual retirement account (IRA) within 60 days. The farmland must be located in the United States and must have been used for farming for most of the 10 years before the sale. The farmer who buys the land must agree in writing to keep using it for farming for at least 10 years; if the buyer stops farming the land or sells it within those 10 years, they will owe a tax on the amount that was originally tax-free, plus interest.

Your Vote