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2020 IA 100A, page 3
Instructions for 2020 IA 100A – Iowa Capital Gain Deduction for Sales of Cattle, Horses, or
Breeding Livestock
The Iowa capital gain deduction is subject to chickens, turkeys, pigeons, geese, other birds,
review by the Iowa Department of Revenue. fish, frogs, or reptiles, and sales of these
The Department will use this form to verify that animals do not qualify for the Iowa capital gain
the taxpayer(s) qualifies for the deduction. The deduction.
Department may request additional information
Livestock use: Enter whether the taxpayer
if needed.
used the livestock sold for “Breeding,” “Dairy,”
This completed form must be included with the “Draft,” or “Sporting” purposes. Livestock other
IA 1040 to support the Iowa capital gain than cattle and horses must be used for
deduction claimed for livestock sales. Multiple breeding purposes to qualify for the Iowa
livestock sales can be reported on one IA 100A capital gain deduction.
as long as the property details are the same
Documented sale date: Enter the sale date
across all sales. If property details reported in
for the livestock sold, as indicated in supporting
Part II differ across sales, complete a separate
documentation and as reported on the
IA 100A. Complete the form each year of a
taxpayer’s federal return.
qualifying installment sale, including all parts.
Meet minimum holding period?: Enter “Yes”
For taxpayers filing separately on the same
or “No” to indicate whether the livestock sold
return, each spouse must complete an IA 100A
meet the minimum holding period. Cattle and
for the Iowa capital gain deduction claimed
horses must be held for at least 24 months.
based on the spouse’s ownership percentage
Other breeding livestock must be held for at
in the property.
least 12 months. Cattle, horses, and other
Flowcharts to assist in determining if a gain breeding livestock that do not meet the
qualifies are also available in the expanded minimum holding period do not qualify for the
instructions online. For more information on the Iowa capital gain deduction and should not be
Iowa capital gain deduction, see the included.
instructions below and Iowa Administrative
Name of purchaser, if lineal descendant: If
Code rule 701—40.38.
the purchaser of the livestock is a lineal
Part I: Sale of Cattle, Horses, or Breeding descendant of the taxpayer, enter the name of
Livestock the purchaser. If the purchaser of the livestock
is not a lineal descendant of the taxpayer,
Line 1. Check the box to indicate whether the
leave the field blank. Lineal descendant is
taxpayer reported the capital gain under
defined as a child of the taxpayer including a
Internal Revenue Code (IRC) section 1231.
biological child, a legally adopted child, a
Line 2. Complete the table as instructed below. stepchild, grandchild, and great-grandchild.
Enter each animal sold on a separate line;
Relation of purchaser, if lineal descendant:
however, if multiple animals have identical
If the purchaser of the livestock is a lineal
information in each column of the table, the
descendant of the taxpayer, enter the
animals may be combined on one line by
purchaser’s relation to the taxpayer (for
entering the number and type of livestock sold
example, “Child,” “Grandchild”). If the
in the first column (for example, “3 Bulls,” “10
purchaser of the livestock is not a lineal
Swine”). Include a separate statement if more
descendant of the taxpayer, leave the field
lines are needed:
blank.
Type of livestock: Enter the type of livestock
Line 4. Enter the taxpayer’s gross income from
sold as “Cattle,” “Horses,” or specify the type of
farming or ranching operations in tax year
breeding livestock sold. Breeding livestock may
2020. If married filing jointly, income from both
include swine, donkeys, sheep, goats, fur-
spouses must be included. Farming and
bearing mammals, and other mammals.
ranching gross income is typically reported on
Breeding livestock does not include poultry,
41-155c (08/31/2020)
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