This bill would change the Internal Revenue Code to exclude from gross income any gain when a taxpayer sells or exchanges qualified farm property to a qualified family member. "Qualified farm property" is U.S. real property that the seller owned and used as a farm for at least 2 years within the 8 years before the sale. "Qualified family member" includes the seller's spouse, lineal descendants (children, grandchildren) of the seller, the seller's spouse, the seller's parents, or the parents of the seller's spouse, and the spouses of those descendants. A legally adopted child counts as a child.
Under the bill, the buyer (the qualified family member) takes the seller's adjusted basis in the property. If the family member keeps the property for 10 years without selling or otherwise disposing of it, the basis is increased to reflect the fair market value at the time of the original sale, up to the difference described in the bill. The Secretary of the Treasury must issue regulations to carry out the rules. The changes apply to sales or exchanges after the act is enacted.
No publicly available information on projected federal revenue effects or administrative costs appears in the bill text or the provided metadata.
The bill text and title show the sponsors introduced this change to create an exclusion from gross income for gains on the sale of qualifying farm property when sold to qualifying family members.
No publicly available information on opposition, opposition arguments, or official critiques appears in the bill text or the provided metadata.