House
File
2649
-
Enrolled
House
File
2649
AN
ACT
EXCLUDING
THE
NET
CAPITAL
GAIN
FROM
THE
SALE
OF
CERTAIN
LIVESTOCK
FROM
THE
COMPUTATION
OF
NET
INCOME
FOR
PURPOSES
OF
THE
INDIVIDUAL
INCOME
TAX,
AND
INCLUDING
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
422.7,
Code
2024,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
44.
a.
For
purposes
of
this
subsection,
“held”
shall
be
determined
with
reference
to
the
holding
period
provisions
of
section
1223
of
the
Internal
Revenue
Code
and
the
federal
regulations
pursuant
thereto.
b.
Subtract
the
net
capital
gain
from
the
following:
(1)
The
sale
of
cattle
or
horses
held
by
the
taxpayer
for
breeding,
draft,
dairy,
or
sporting
purposes
for
a
period
of
twenty-four
months
or
more
from
the
date
of
acquisition,
but
only
if
the
taxpayer
received
more
than
one-half
of
the
taxpayer’s
gross
income
from
farming
or
ranching
operations
during
the
tax
year.
(2)
The
sale
of
breeding
livestock,
other
than
cattle
or
horses,
held
by
the
taxpayer
for
a
period
of
twelve
months
or
more
from
the
date
of
acquisition,
but
only
if
the
taxpayer
received
more
than
one-half
of
the
taxpayer’s
gross
income
from
farming
or
ranching
operations
during
the
tax
year.
c.
A
retired
farmer
as
defined
in
subsection
13
is
not
eligible
for
the
exclusion
in
this
subsection
if
taking
the
House
File
2649,
p.
2
exclusion
allowed
in
subsection
13,
paragraph
“c”
or
“d”
,
in
the
same
tax
year.
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
retroactively
to
January
1,
2023,
for
tax
years
beginning
on
or
after
that
date.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2649,
Ninetieth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2024
______________________________
KIM
REYNOLDS
Governor