Committee hears bill to extend beginning-farmer capital gains exemption to sales to LLCs, corporations

Representative Dane Deel returned to the committee to introduce House Bill 1042, described as a cleanup and expansion of a beginning-farmer capital-gains incentive passed previously.

Deel said the original program, enacted two years earlier, allows a capital-gains deduction for sellers who sell qualifying farmland to a beginning farmer. Under the program, a beginning farmer is defined in the bill as someone within 10 years of filing a first Schedule F tax form; the deduction is bracketed and can apply up to $2,000,000 in proceeds, and sellers can qualify for a reduced or 0% state capital-gains rate when the sale meets the…