New Iowa Form 100A is Ready for Those Claiming 2023 Iowa Capital Gain Deduction for Sale of Breeding or Dairy Livestock

On Thursday, June 6, 2024, the Iowa Department of Revenue announced that the revised 2023 Form IA 100A (Iowa Capital Gain Deduction – Cattle, Horses, or Breeding Livestock) is ready to file.

HF 2317, passed in 2022, limited the Iowa capital gain deduction to apply to gain from the sale of “Real property used in a farming business,” beginning in tax year 2023. Except for a narrow provision allowing retired farmers to exclude capital gain from the sale of breeding or dairy livestock when they liquidated their herds, the law eliminated the long-standing capital gain exclusion for the sale of certain livestock for non-retired farmers.

House File 2649, signed by the Governor on May 15, 2024, restores this deduction, allowing taxpayers to exclude capital gain from the sale of certain livestock from the computation of net income for individual income tax purposes. This law, applying to those farmers who earn more than 50 percent of their gross income from farming, applies retroactively to include the 2023 tax year.

Taxpayers wishing to claim this deduction for tax year 2023 may file an original, or amended, individual income tax return on paper and include the newly revised IA 100A (Iowa Capital Gain Deduction – Cattle, Horses, or Breeding Livestock) form.