41-184: IA 100G Capital Gain Deduction - Retired Farmers 41-184 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 IA 100G is Iowa’s capital gain deduction form for retired farmers making or using a lifetime election to exclude qualifying gains from sales of real property, cattle, horses, or other breeding livestock used in a farming business. It records election status, surviving sp
Who files this form
Use the 2025 IA 100G to claim the Iowa capital gain deduction for qualifying farm sales under a retired farmer’s lifetime election. The form covers sales of real property, cattle, horses, or other breeding livestock used in a farming business 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 rules 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 using the lifetime election, use IA 100A for qualifying livestock sales or IA 100H for qualifying farm real property sales instead, if eligible.
What you'll need
Have the following information and supporting records available, as applicable:
- Your name, Social Security number, and the tax year of any previous lifetime election.
- Real property details: address or legal description, county and location, acres sold, acquisition and sale dates, holding period, and how you acquired the property.
- Ownership percentages, other owners’ names, and real property buyers’ names and relationships to you.
- Records supporting material participation, including farming duties, years, hours, land managers, acreage uses, and the federal forms or schedules used to report farm income.
- Livestock records showing animal type, use, documented sale date, and whether the minimum holding period was met.
- Installment sale details: first and expected final installment dates, total capital gain, and capital gain received in the current tax year.
Include separate statements when required for the material participation test you claim or when you need more lines for livestock sales. A surviving spouse disclaiming the deceased spouse’s election must include the Surviving Spouse Disclaimer (41-190) with the return.
How to file
Include the completed IA 100G with your IA 1040 Iowa Individual Income Tax Return (41-001).
- Complete a separate IA 100G for each real property sale.
- Complete the entire form each year of a qualifying installment sale, including all parts.
- Follow the form’s directions for the parts that apply to real property sales, livestock sales, or both.
- Add the deductions in Part VIII, lines 1 and 2. Enter the total on Part VIII, line 3, and IA 1040 Schedule 1, line 16.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Including installment interest. Do not include interest received when reporting installment sale capital gains.
- Using unsupported farming activities. Your activities must be supported by records. Records prepared long after the activity are generally not acceptable. Do not include work performed by tenants, farm hands, or anyone other than you or your spouse. For inherited property, the deceased owner’s activities do not count toward your material participation.
- Reporting inconsistent acreage. The acreage categories in Part IV must total the acres sold in Part III, line 2.
- Claiming sole ownership of jointly owned property. Married taxpayers who jointly own the property should answer “No” to the sole-owner question.
- Including livestock held too briefly. Cattle and horses must be held at least 24 months. Other breeding livestock must be held at least 12 months. Do not include animals that fail these requirements.
- Assuming cash rent proves material participation. A farmer renting property for cash generally is not considered materially participating. The landlord must show material participation.
Questions people ask
What does “substantially all” of my farming business interest mean?
For the livestock sale requirement, it means at least 90% of your interest in the farming business.
Can both spouses make the lifetime election?
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, include only that spouse’s ownership percentage.
Can a surviving spouse make an election for the deceased spouse?
Yes. 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.
How does the lifetime capital gain election affect the farm tenancy income exclusion?
The election disqualifies you from electing to exclude income from a farm tenancy agreement in the current tax year or any later tax year.
Can Iowa request more information about my deduction?
Yes. The Iowa Department of Revenue uses this form to verify eligibility, may review the deduction, and may request additional information.