41-158: IA 100D Capital Gain Deduction - Timber 41-158 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 IA 100D supports an Iowa capital gain deduction for qualifying timber installment sales that occurred before January 1, 2023. It reports sale details, timber ownership and holding periods, and the capital gain deduction claimed for the current year, excluding land value.
Who files this form
Use the 2024 IA 100D to support an Iowa capital gain deduction for a qualifying timber installment sale that occurred before January 1, 2023.
The deduction is limited to gains from selling cut timber or a contract to cut timber, not the associated land value. The holding period must be at least 12 months, and the gain must have been reported under IRC section 1231.
Include a completed IA 100D with your IA 1040. Complete a separate form for each timber sale and 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 percentage.
What you'll need
Have these records and details available to complete the form:
- Your name and Social Security number.
- The first installment date, expected final installment date, total capital gain over the sale, deductions claimed in prior years, and capital gain received during tax year 2024.
- The timber's address or legal description. If using a legal description, also provide the location relative to a major road or town and the county.
- Supporting documentation showing when the timber was acquired and sold, plus the holding period in years and months.
- How the buyer intends to use the timber and how you acquired it.
- Your ownership percentage at the time of sale, owner names, and buyer names.
If the ownership period shown in Part II, line 2 is less than 12 months, include a separate statement explaining why it differs from the holding period. The Department may request additional information.
How to file
- Complete all parts of IA 100D for each qualifying timber installment sale.
- Enter the taxpayer's capital gain deduction from Part I, line 2e on Part III, line 8, and include it on IA 1040 Schedule 1, line 16.
- Include the completed IA 100D with your IA 1040.
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Using the form for an ineligible sale. Stop if the sale did not occur before January 1, 2023, was not an installment sale, or the gain was not reported under IRC section 1231.
- Including interest. Do not include interest received in the installment-sale capital gain information.
- Including land value. The deduction covers qualifying timber gains, not associated land value.
- Claiming ineligible losses. The deduction applies to net capital gain. Nonrecaptured losses are treated as ordinary income and are not eligible.
- Reporting the wrong ownership percentage. Use the percentage at the time of sale, rounded to the nearest one tenth of one percent. If you are not the sole owner, it must be greater than 0% and less than 100%.
- Leaving out owners of a pass-through entity. If the gain flowed through from a partnership, S corporation, LLC, estate, or trust, report all owners of that entity.
Questions people ask
Can I use the 2024 form for a timber sale made in 2024?
No. This form is only for qualifying installment sales that occurred before January 1, 2023.
Do I need to complete the form again each year?
Yes. Complete all parts for each year of a qualifying installment sale. Use a separate IA 100D for each timber sale.
How do married owners answer the sole-owner question?
If you file jointly and you and your spouse are the only owners, check yes on Part III, line 3. If you file separately and both spouses are owners, check no. Each spouse must complete a separate IA 100D and enter their separate ownership percentage on line 4.
Can a capital gain from a C corporation qualify?
The form requires the gain to be recognized under IRC section 331 or 338. If it was not, the form directs you to stop because the sale is not eligible. The other eligibility requirements also apply.