41-158: IA 100D Capital Gain Deduction - Timber 41-158 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 IA 100D supports an Iowa capital gain deduction claimed for timber installment sales occurring before January 1, 2023. It reports sale details, ownership and holding periods, capital gains received, and the deduction claimed, excluding the value of associated land.
Who files this form
Use the 2025 IA 100D to support an Iowa capital gain deduction for a qualifying installment sale of timber that occurred before January 1, 2023. Include it with your IA 1040 Iowa Individual Income Tax Return.
To qualify:
- The timber holding period must be at least 12 months.
- The gain must have been reported under IRC section 1231.
- The deduction must be for cut timber or a contract to cut timber, not the associated land value.
- If the gain is from a C corporation, it must have been recognized under IRC section 331 or 338.
Complete a separate IA 100D 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 the following information ready:
- 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 in 2025.
- The timber’s address or legal description. If using a legal description, also give the county and describe the location in relation to a major road or town.
- Supporting documentation showing the timber acquisition and sale dates, plus the holding period in years and months.
- The buyer’s intended use of the timber and how you acquired it.
- Your ownership percentage at the time of sale, all other owners’ names, and all buyers’ 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. If the gain passed through from a partnership, S corporation, LLC, estate, or trust, report all owners of that entity.
How to file
Complete all parts of IA 100D and include the completed form with your IA 1040 Iowa Individual Income Tax Return (41-001).
Enter the deduction on Part III, line 8 and include it on IA 1040 Schedule 1, line 16. Use a separate IA 100D for each timber sale.
The supplied text does not provide a mailing address or e-file instructions.
Common mistakes
- Using the form for an ineligible sale. Stop if the sale occurred on or after January 1, 2023, or was not an installment sale.
- Including interest. Do not include interest received in the installment-sale capital gain information.
- Including land value. The deduction covers qualifying timber gains, not the value of associated land.
- Overlooking the holding period. It must be at least 12 months. Include an explanation if the ownership period shown on the form is shorter.
- Reporting the wrong ownership share. Round to the nearest one tenth of one percent. If you are not the sole owner, your percentage must be greater than 0% and less than 100%.
- Deducting nonrecaptured losses. The deduction applies to net capital gain. Nonrecaptured losses are treated as ordinary income and are not eligible.
- Leaving out forms or parts. Complete all parts each year of a qualifying installment sale and submit a separate form for each sale.
Questions people ask
Can I claim a deduction in 2025 for an older installment sale?
Deductions for previously eligible installment sales are still allowed if the sale occurred before January 1, 2023. Complete IA 100D for each year of a qualifying installment 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 an IA 100D and enter their own ownership percentage on line 4.
Does the deduction include the land where the timber grew?
No. It applies only to qualifying capital gains from cut timber or a contract to cut timber, not the associated land value.
Can the Department ask for more information?
Yes. The Iowa Department of Revenue uses this form to verify eligibility and may request additional information.