Gorsche v. Board of Tax Review, No. CVCV 8379 (Polk Co. Dist. Ct (Iowa) May 5, 2011)

(court upholds defendant's denial of married couple's claimed capital gain deduction from sale of farmland for failure to own the farmland for statutorily-required 10-year period; farmland gifted to husband and his siblings in 1990 and operated in family trust until 1999 when it was distributed equally to all siblings before transfer to LLC; farmland sold in 1999 and husband's share of gain was $74,949 and husband attempted to deduct amount of gain on Iowa return; husband did not "hold" the property for required 10-years under Iowa Code Sec. 422.7(21)(a); at time Iowa Dept. of Revenue regulation did not match how holding period of capital asset measured under Internal Revenue Code and did not allow time asset held by any other person if property has same basis as it had in the other person; 2006 amendment to conform to I.R.C. not merely clarification of intent that federal rules apply - it was a substantive change in the law).