41-155: IA 100A Capital Gain Deduction - Livestock 41-155 (2024)

Who files this form

Include a completed 2024 IA 100A with your IA 1040 if you claim the Iowa capital gain deduction for qualifying sales of cattle, horses, or other breeding livestock covered by this form.

IA 100A is for installment sales occurring before January 1, 2023, and sales occurring after January 1, 2023, that are not claimed under the single lifetime election for retired farmers and surviving spouses. Sales on or after January 1, 2023, claimed under that election belong on IA 100G instead.

Key eligibility requirements include:

• The gain must be reported under Internal Revenue Code section 1231.
• Cattle and horses must have been held for at least 24 months. Other breeding livestock must have been held for at least 12 months.
• Cattle and horses may be used for breeding, dairy, draft, or sporting purposes. Other livestock must be used for breeding.
• If farming or ranching gross income does not exceed 50.0% of total gross income, the form limits qualifying sales to those before January 1, 2023, made to a lineal descendant.
• Gain from a C corporation must be recognized under IRC section 331 or 338.

Complete all parts of the form for each year of a qualifying installment sale. Spouses filing separately must each complete an IA 100A for the deduction claimed based on their ownership share.

What you'll need

Have these records and details available to complete the form:

• Your name and Social Security number.
• Sale documentation and your federal return showing the livestock sale date.
• Each animal’s type, use, and information showing whether it meets the minimum holding period.
• The buyer’s name and relationship to you, if the buyer is a lineal descendant.
• For installment sales, the first installment date, expected final installment date, total capital gain, deductions claimed in prior years, and capital gain received in 2024.
• Gross farming or ranching income and total gross income for the year the sale occurred. Relevant records may include federal Schedule F, Form 4835, partnership income records, and your IA 1040.
• Your ownership percentage at the time of sale and the names of other owners, or the pass-through entity’s name, if applicable.

Include a separate statement if the livestock table needs more lines. The Department may request additional information to verify the deduction.

How to file

Include the completed IA 100A with your IA 1040. Enter the deduction on IA 100A, Part II, line 13, and include it on IA 1040 Schedule 1, line 16.

• Complete Part I, including installment sale details when applicable.
• Complete Part II with livestock sale details, income figures, ownership information, and the deduction amount.
• Multiple sales may share one IA 100A only if the property details are the same across the sales. Use a separate IA 100A when those details differ.
• Enter each animal on a separate line. Animals with identical information in every table column may be grouped by entering their number and type.

The supplied text does not provide a mailing address or e-file directions.

Common mistakes

• Including interest in installment sale capital gain. The instructions say not to include interest received.
• Listing ineligible animals. Do not include livestock that fail the minimum holding period. Birds, fish, frogs, and reptiles do not qualify.
• Using net income for the gross-income calculation. Use income before expenses for Part II, lines 3 and 4, from the year the sale occurred. Joint filers must include both spouses’ income.
• Keeping sales that fail the line 7 or line 8 tests. If directed to those lines, remove sales on or after January 1, 2023, and sales to anyone other than a lineal descendant.
• Entering 100% ownership when you are not the sole owner. Your share must be greater than 0% and less than 100%, except that joint filers who are the only owners enter 100%.
• Claiming an amount beyond the eligible net capital gain. The deduction applies to net capital gain from a sale. Nonrecaptured losses treated as ordinary income are not eligible.

Questions people ask

Who counts as a lineal descendant?

A child, including a biological child, legally adopted child, or stepchild, as well as a grandchild or great-grandchild.

Do I need to complete the form again for an installment sale?

Yes. Complete all parts for each year of a qualifying installment sale, including the capital gain received in the current tax year.

What if I am using the single lifetime election for retired farmers or surviving spouses?

Use IA 100G for sales on or after January 1, 2023, claimed under that election. The instructions say taxpayers who have elected to deduct livestock capital gains under Iowa Code section 422.7(13)(c) or (d) are not eligible to claim this IA 100A deduction.

Can I list a pass-through entity instead of every other owner?

Yes. If the gain flowed through from a partnership, S corporation, LLC, estate, or trust, you may list only that entity on Part II, line 12, instead of all other co-owners.

Can the Department review my deduction?

Yes. The Iowa Department of Revenue uses this form to verify eligibility and may request additional information.

Official sources

• https://revenue.iowa.gov/media/4100/download?inline