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Iowa Livestock Capital Gain Deduction for 2023

On May 15, 2024, Governor Reynolds signed into law House File 2649 that provides an Iowa individual income tax deduction for capital gains incurred on the sale of certain livestock.  

The Iowa livestock capital gain deduction is available retroactively for tax years beginning on or after January 1, 2023. To claim the livestock capital gain deduction, taxpayers should paper-file an original or amended Iowa individual income tax return with the newly revised IA Form 100A.  

Taxpayers who receive more than half of their gross income from farming or ranching operations during the year are eligible to deduct the net capital gain from the sale of livestock if:  

  1. the taxpayer held cattle or horses (used for breeding, draft, dairy, or sporting purposes) for at least 24 months from the date of acquisition; or  
  2. the taxpayer held breeding livestock (other than cattle or horses) for at least 12 months from the date of acquisition.  

Special thanks to summer associate Grace Kruse for her significant contribution in writing this article and researching many of the underlying taxation issues.  

This article was written for general informational purposes and summarizes tax laws. As such, it should not be relied upon for compliance with the Internal Revenue Code or state tax laws. 

If you have questions regarding the Iowa livestock capital gain deduction or any other tax-related matter, please reach out to Christopher Nuss, Maggie Simonson Schild, or one of our other Taxation Attorneys.