Bill Text: IA SF2400 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for 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.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2024-04-18 - Subcommittee reassigned: Dawson, Driscoll, and T. Taylor. S.J. 892. [SF2400 Detail]
Download: Iowa-2023-SF2400-Introduced.html
Senate
File
2400
-
Introduced
SENATE
FILE
2400
BY
DRISCOLL
A
BILL
FOR
An
Act
excluding
the
net
capital
gain
from
the
sale
of
certain
1
livestock
from
the
computation
of
net
income
for
purposes
2
of
the
individual
income
tax,
and
including
retroactive
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5662XS
(1)
90
jm/jh
S.F.
2400
Section
1.
Section
422.7,
Code
2024,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
44.
a.
For
purposes
of
this
subsection,
3
“held”
shall
be
determined
with
reference
to
the
holding
period
4
provisions
of
section
1223
of
the
Internal
Revenue
Code
and
the
5
federal
regulations
pursuant
thereto.
6
b.
Subtract
the
net
capital
gain
from
the
following:
7
(1)
The
sale
of
cattle
or
horses
held
by
the
taxpayer
for
8
breeding,
draft,
dairy,
or
sporting
purposes
for
a
period
9
of
twenty-four
months
or
more
from
the
date
of
acquisition,
10
but
only
if
the
taxpayer
received
more
than
one-half
of
the
11
taxpayer’s
gross
income
from
farming
or
ranching
operations
12
during
the
tax
year.
13
(2)
The
sale
of
breeding
livestock,
other
than
cattle
or
14
horses,
held
by
the
taxpayer
for
a
period
of
twelve
months
or
15
more
from
the
date
of
acquisition,
but
only
if
the
taxpayer
16
received
more
than
one-half
of
the
taxpayer’s
gross
income
from
17
farming
or
ranching
operations
during
the
tax
year.
18
c.
A
retired
farmer
as
defined
in
subsection
13
is
not
19
eligible
for
the
exclusion
in
this
subsection
if
taking
the
20
exclusion
allowed
in
subsection
13,
paragraph
“c”
or
“d”
,
in
the
21
same
tax
year.
22
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
23
retroactively
to
January
1,
2024,
for
tax
years
beginning
on
24
or
after
that
date.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
excludes
the
net
capital
gain
from
the
sale
of
29
certain
livestock
from
the
computation
of
net
income
for
30
purposes
of
the
individual
income
tax.
31
The
bill
allows
a
taxpayer
to
exclude
the
net
capital
gain
32
from
the
sale
of
cattle
or
horses
if
held
by
the
taxpayer
for
33
breeding,
draft,
dairy,
or
sporting
purposes
for
more
than
34
24
months,
but
only
if
the
taxpayer
received
more
than
50
35
-1-
LSB
5662XS
(1)
90
jm/jh
1/
2
S.F.
2400
percent
of
the
taxpayer’s
gross
income
from
farming
or
ranching
1
operations
during
the
tax
year.
2
The
bill
allows
a
taxpayer
to
exclude
the
net
capital
gain
3
from
the
sale
of
breeding
livestock,
other
than
cattle
or
4
horses,
held
by
the
taxpayer
for
a
period
of
12
months
or
more
5
from
the
date
of
acquisition,
but
only
if
the
taxpayer
received
6
more
than
one-half
of
the
taxpayer’s
gross
income
from
farming
7
or
ranching
operations
during
the
tax
year.
8
A
retired
farmer
as
defined
in
Code
section
422.7(13)
is
9
not
eligible
for
the
exclusion
in
the
bill
if
taking
a
similar
10
exclusion
allowed
in
Code
section
422.7(13).
11
The
bill
applies
retroactively
to
January
1,
2024,
for
tax
12
years
beginning
on
or
after
that
date.
13
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(1)
90
jm/jh
2/
2
