41-184: IA 100G Capital Gain Deduction - Retired Farmers 41-184 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 IA 100G is used by retired farmers to make a lifetime election to claim the Iowa capital gain deduction on qualifying sales of real property, cattle, horses, or other breeding livestock used in a farming business. It records election information, property sale details, a
Who files this form
Use the 2024 IA 100G if you are a retired farmer making the lifetime election to deduct qualifying capital gains from sales of real property, cattle, horses, or other breeding livestock used in a farming business. This form applies to sales occurring on or after January 1, 2023.
A retired farmer is an individual who is disabled or age 55 or older and who no longer materially participates in a farming business when claiming the exclusion and deduction.
The form also includes a path for surviving spouses of retired farmers. If you are both a retired farmer and a surviving spouse, complete Parts I and II.
If you are not making the lifetime election, use IA 100A for qualifying livestock sales or IA 100H for qualifying sales of real property used in a farming business instead.
What you'll need
Have the records and information that apply to your sale ready:
- Property records: Address or legal description, county, acres sold, documented acquisition and sale dates, and holding period.
- Ownership and buyer details: Your ownership percentage, other owners’ names, how you acquired the property, and real-property buyers’ names and relationships to you.
- Farming activity records: Years of participation, duties performed by you or your spouse, land managers, acreage uses, and the federal forms or schedules used to report income. Your activities must be supported by records.
- Livestock records: Animal type, use, documented sale date, and whether the minimum holding period was met.
- Installment-sale records: First and expected final installment dates, total capital gain, and capital gain received in the current tax year.
- Additional statements, if applicable: Explanations required for the material participation tests in Part IV, lines 6d or 6e, or Part VI, lines 3d or 3e.
- Surviving-spouse information, if applicable: The deceased spouse’s date of death and election history. Include Surviving Spouse Disclaimer (41-190) with your return if you disclaim the deceased spouse’s election.
How to file
Include the completed IA 100G with your IA 1040 to support the deduction.
- Complete a separate IA 100G for each sale of real property.
- Complete the entire form, including all parts, each year of a qualifying installment sale.
- Follow the form’s directions through the election questions and the applicable real-property or livestock sections.
- Add the real-property and livestock deductions in Part VIII. Enter the total on IA 1040 Schedule 1, line 16.
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Overlooking election restrictions: The form says the sale is not eligible if you claimed the beginning farmer tax credit in the current tax year or elected to exclude farm tenancy income in the current or any prior tax year.
- Including installment interest: Do not include interest received in the installment-sale capital gain amounts.
- Using unsupported activity descriptions: Do not count work performed by tenants, farm hands, or anyone other than you or your spouse. For inherited property, the deceased owner’s work before death does not count. Records prepared long after the activity are generally not acceptable.
- Reporting inconsistent acreage: The acreage categories in Part IV must total the acres sold reported in Part III, line 2.
- Reporting joint ownership as sole ownership: Married taxpayers who jointly own the property should check “No” to sole ownership.
- Including livestock held too briefly: Exclude cattle and horses held less than 24 months and other breeding livestock held less than 12 months.
Questions people ask
What does selling “substantially all” of my farming business mean?
For the livestock-sale question in Part VI, it means selling at least 90% of your interest in the farming business.
What uses of livestock can qualify?
The form lists breeding, dairy, draft, and sporting uses. Livestock other than cattle and horses must be used for breeding purposes to qualify.
Can both spouses make the lifetime election?
Yes. If both spouses make the election, each must complete an IA 100G and report their own ownership percentage. If only one spouse makes the election, report only that spouse’s ownership percentage.
Can a surviving spouse make an election for a deceased spouse?
A surviving spouse may make the election on the deceased spouse’s final return if the deceased spouse was eligible to make it before death.
Can Iowa ask for more information after I file?
Yes. The Iowa Department of Revenue reviews the deduction and may request additional information to verify eligibility.