41-155: IA 100A Capital Gain Deduction - Livestock 41-155 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 Iowa IA 100A supports a capital gain deduction for qualifying sales of cattle, horses, or breeding livestock. It reports sale details, installment-sale gains, farming and ranching income, ownership percentage, and the deduction claimed with your IA 1040.
Who files this form
Use the 2025 IA 100A to support an Iowa capital gain deduction for qualifying sales of cattle, horses, or other breeding livestock. Include the completed form with your IA 1040.
This form covers installment sales occurring before January 1, 2023, and later sales 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 at least 24 months. Other breeding livestock must have been held at least 12 months.
- Livestock other than cattle and horses must have been used for breeding.
- If farming or ranching gross income does not exceed 50.0% of total gross income, the form directs you to retain only sales before January 1, 2023, made to a lineal descendant.
- Gain reported by a C corporation must meet the form’s requirements under IRC section 331 or 338.
Complete all parts each year of a qualifying installment sale. Spouses filing separately must each complete a form 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 showing the sale date, consistent with the date reported on your federal return.
- Each animal’s type, use, and whether it meets the minimum holding period.
- The buyer’s name and relationship to you, if the buyer is a lineal descendant.
- Farming or ranching gross income and total gross income for the year the sale occurred. The instructions refer to federal Schedule F, Form 4835, partnership farming income, and the applicable IA 1040 income line.
- Your ownership percentage at the time of sale and the names of other owners, or the pass-through entity’s name.
For installment sales, also gather the first installment date, expected final installment date, total capital gain over the sale’s life, deductions claimed in prior years, and capital gain received in 2025.
Include a separate statement if the livestock table needs more lines. The Department may request additional information.
How to file
Include the completed IA 100A with your IA 1040. Enter the deduction on IA 100A, Part II, line 13, and include that amount on IA 1040 Schedule 1, line 16.
You may report multiple livestock sales on one IA 100A if the property details are the same across the sales. If the Part II property details differ, complete separate forms.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Including installment-sale interest. Do not include interest received in the installment-sale capital gain information.
- Using net income for the gross-income test. Use income before expenses and income from the year the sale occurred. Joint filers must include both spouses’ income.
- Including ineligible animals. Do not include livestock that fail the minimum holding period. Birds, fish, frogs, and reptiles do not qualify.
- Reporting full ownership when you are only a part-owner. Your percentage must be greater than 0% and less than 100% unless you are the sole owner. Joint filers who are the only owners together enter 100%.
- Claiming amounts beyond eligible net capital gain. The deduction applies to net capital gain. 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.
Can I combine several animals on one table line?
Yes, if every column has identical information for those animals. Enter the number and type in the first column, such as “3 Bulls.” Otherwise, list each animal separately.
Which uses qualify for cattle and horses?
The form lists breeding, dairy, draft, and sporting uses. Livestock other than cattle and horses must be used for breeding.
Will the Department review my deduction?
The Iowa Department of Revenue uses this form to verify eligibility. The deduction is subject to review, and the Department may request more information.