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2022 IA 100B
Iowa Capital Gain Deduction – Real Property Used in a Farm Business
tax.iowa.gov

Name(s): _____________________________________ Social Security Number: __________________

Part I: Sale of Real Property Used in a Farm Business

1. Farmland address or legal description (include county and a general description of the location):
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
2. Total number of acres sold: ______________________________________________________
3. Ownership period
a. Date acquired ........................................... 3a. ______________
b. Date sold ................................................... 3b. ______________
4. Length of holding period ................................... Years 4a. _______ Months 4b. ___________
5. If the taxpayer did not own the property for at least 10 years, explain how the taxpayer held the
property for at least 10 years under IRC section 1223.
___________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
6. Is the taxpayer receiving Old-Age Social Security benefits?
No ☐ ... Continue to Part I, line 8.
Yes ☐... Continue to Part I, line 7.

7. Provide the date taxpayer started receiving Old-Age Social Security benefits .. 7. ____________

8. Is the taxpayer a disabled farmer?
No ☐ ... Continue to Part I, line 10.
Yes ☐... Continue to Part I, line 9.

9. Provide the date the taxpayer’s disability began ............................................... 9. ____________
10. Is the taxpayer the surviving spouse of a farmer?
No ☐ ... Continue to Part I, line 14.
Yes ☐... Continue to Part I, line 11

11. Provide the date of the spouse’s death ............................................................. 11. ___________
12. Was the spouse receiving Old-Age Social Security benefits at the time of death?
No ☐ ... Continue to Part I, line 14.
Yes ☐... Continue to Part I, line 13.

13. Provide the date the spouse started receiving Old-Age Social Security
benefits ............................................................................................................. 13. ___________

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2022 IA 100B, page 2

14. Report the following for the 10 years prior to the sale, or if the taxpayer was receiving Old-Age
Social Security benefits, report the following for the 8 years prior to the first year the benefits
were received. See instructions if taxpayer answered yes to Part I, lines 6, 8, or 10.

Federal form or Acres the
Paid? schedule where taxpayer Cash Crop-
Calendar Name of land Yes taxpayer personally rent share CRP Other
Year manager or No reported income farmed acres acres acres acres

15. Cash Rent or Lease Arrangement
15a. Was the property rented on a cash rent or lease basis?
No ☐ .. Continue to Part I, line 16.
Yes ☐.. Continue to Part I, line 15b

15b. Did you materially participate in the farming activity?
No ☐ .. Sale is not eligible for Iowa capital gain deduction. Stop.
Yes ☐.. Continue to Part I, line 19 to explain material participation in the farming activity.
See instructions.
16. Crop-Share Arrangement
16a. Was the property involved in a crop-share arrangement?
No ☐ ... Continue to Part I, line 18.
Yes ☐... Continue to Part I, line 16b.

16b. Are you subject to self-employment tax on your crop-share income?
No ☐ ... Continue to Part I, line 17.
Yes ☐... Continue to Part I, line 19.

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2022 IA 100B, page 3
17. Check the box for each applicable material participation test for which the taxpayer has
documentation. Check all that apply. If none of these apply, stop, the sale is not eligible for the
Iowa capital gain deduction.
17a. Test 1: The landlord does any three of the following:
• Pays or is obligated to pay for at least half the direct
costs of producing the crop....................................................................................... ☐
• Furnishes at least half the tools, equipment, and livestock
used in producing the crop. ....................................................................................... ☐
• Consults with the tenant. ........................................................................................... ☐
• Inspects the production activities periodically. ........................................................... ☐

17b. Test 2: The landlord regularly and frequently makes,
or takes part in making, management decisions substantially
contributing to or affecting the success of the enterprise. ................................................ ☐

17c. Test 3: The landlord worked 100 hours or more spread over a period
of five weeks or more in activities connected with crop production .................................. ☐

17d. Test 4: The landlord has done tasks or performed duties which,
considered in their total effect, show that the landlord was materially
and significantly involved in the production of the farm commodities .............................. ☐

18. Conservation Reserve Program (CRP)
18a. Was the property enrolled in the CRP?
No ☐ ... Continue to Part I, line 19.
Yes ☐... Continue to Part I, line 18b.

18b. Are you subject to self-employment tax on your CRP income?
No ☐ ... This gain may not be eligible for Iowa capital gain deduction. See instructions.
Yes ☐... Continue to Part I, line 19.

19. Describe in detail by activity (acres personally farmed, cash rent or lease, crop-share, CRP, or
other) the daily, weekly, monthly, and annual duties of the taxpayer associated with the acres
sold during the period covered in line 14. Include the years the taxpayer performed each duty. If
the taxpayer was married during this period, include duties performed by either spouse.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Part II: Details of Property Sold
1. Is the capital gain from an Iowa corporation?
No ☐ ... Continue to Part II, line 3.
Yes ☐... Continue to Part II, line 2.

2. Was the capital gain recognized under IRC 331 or IRC 338?
No ☐ ... Sale is not eligible for Iowa capital gain deduction. Stop.
Yes ☐... Continue to Part II, line 3.

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                                                                              2022 IA 100B, page 4 
3. Are you the sole owner of this property? Married filers, see instructions.
No  ☐ ... Continue to Part II, line 4.
Yes   ☐... Enter 100% on Part II, line 4.

4. Enter taxpayer’s ownership percentage of the total property
sold to the nearest tenth of one percent (for example 65.2%) .......................... 4.  __________ % 

5. Provide all other owner name(s): ____________________________________________________

6. How did the taxpayer acquire the property? (check all that apply)
Inheritance ☐                                   Like-kind (IRC 1031) Exchange ☐ 
Purchase    ☐                                   Involuntary Conversion ☐ 
Gift  ☐                                         Other  ☐(Explain: ________________________ )

7a. Provide all purchaser name(s):              7b. Purchaser’s relation to taxpayer 
                                                (If unrelated enter “None”): 
 _________________________________              ________________________________________ 
 _________________________________              ________________________________________ 
 _________________________________              ________________________________________ 

8. Is the capital gain from an installment sale?
No  ☐...... Continue to Part II, line 9.
Yes ☐ .... Enter the property installment sale information. 

a. Start date ........................................................ 8a.  _____________ 
b. End date ......................................................... 8b.  _____________ 
c. Total capital gain to be received by taxpayer
      over the life of the installment sale ................. 8c. $ ____________ 
d. Capital gain received by the taxpayer in tax year 2022 .................. 8d. $ _____________ 
9. Iowa capital gain deduction. If the taxpayer meets the holding period
qualifications and material participation qualifications, enter the taxpayer’s
amount of capital gain deduction here and include on IA 1040 line 23  .......  9. $ _____________ 

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2022 IA 100B, page 5

Instructions for 2022 IA 100B – Iowa Capital Gain Deduction for
Sales of Real Property Used in a Farm Business
The Iowa capital gain deduction is subject to (IRC) section 1223, for at least 10 years to
review by the Iowa Department of Revenue. The qualify for the Iowa capital gain deduction. For
Department will use this form to verify that the example, the farmland sold may have been
taxpayer(s) qualifies for the deduction. The acquired in a like-kind exchange or an
Department may request additional information involuntary conversion, and the holding period
if needed. of the farmland sold plus the previously-held
property may be at least 10 years.
This completed form must be included with the
IA 1040 to support the Iowa capital gain Line 14. Complete the table for each of the 10
deduction claimed for sales of real property years prior to the sale. However, the taxpayer
used in a farm business. Complete a separate may instead elect to complete the table for each
IA 100B for each sale of farmland. Complete the of the eight years prior to the date entered in
entire form each year of a qualifying installment Part I, line 7, 9, 11, or 13.
sale, including all parts.
Example 1: The taxpayer sold farmland on an
For taxpayers filing separately on the same installment basis on February 1, 2022. The
return, each spouse must complete an IA 100B taxpayer must complete the table for years 2012
for the Iowa capital gain deduction claimed to 2021, unless the taxpayer checked “Yes” on
based on the spouse’s ownership percentage in Part I, line 6, 8, or 10.
the property.
Example 2: The taxpayer checked Yes on Part
Flowcharts to assist in determining if a gain I, line 6 and began receiving Old-Age
qualifies are also available in the expanded (retirement) benefits under Social Security on
instructions online. For more information on the February 8, 2017. The taxpayer may elect to
Iowa capital gain deduction, see the instructions complete the table for years 2009 to 2016 even
below and Iowa Administrative Code rule 701— if the taxpayer sold the farmland in 2022.
302.38.
Calendar year: Enter one calendar year on
Part I: Sale of Real Property Used in a Farm each line.
Business
Name of land manager: Enter the name(s) of
Line 1. Enter the address of the farmland, or the person(s) who managed the land in the year.
enter the legal description of the farmland if no Enter “Self” if the taxpayer managed the land.
address is available. If providing a legal
Paid? Enter “Yes” or “No” to indicate whether
description, also provide a general description
the reported land manager received any
of the property location in relation to a major
compensation for managing the land in the year.
road or town and the county.
If there were multiple land managers only enter
Line 2. Enter the total number of acres of “Yes” if any person other than the taxpayer was
farmland sold. compensated.

Line 3. Enter the acquisition date and sale date Federal form or schedule where taxpayer
for the farmland, as indicated in supporting reported income: Other than the Federal 1040,
documentation. enter the specific federal form or schedule
number or letter on which the taxpayer reported
Line 4. Enter the length of the holding period in
income from the land in the respective calendar
years and months.
year. Income from farmland is typically reported
Line 5. If the ownership period indicated in Part on federal Schedule E, Schedule F, or Form
I, line 3 is less than 10 years, explain why the 4835.
ownership period differs from the holding period
entered in Part I, line 4. The farmland must be
held, as defined using Internal Revenue Code

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2022 IA 100B, page 6

Acres the taxpayer personally farmed: Enter Line 15b. Check the box to indicate if the
the number of acres of the farmland sold that the taxpayer materially participated in the farming
taxpayer personally farmed in the respective activity.
calendar year. If the taxpayer was married Line 16. Crop-Share Arrangement
during the calendar year, include the acres of
Line 16a. Check the box to indicate if the
the farmland sold that were personally farmed
property was involved in a crop-share
by either spouse.
arrangement.
Cash rent acres: Enter the number of acres of
Line 16b. Check the box to indicate if you are
the farmland sold that the taxpayer leased for
subject to self-employment tax on the crop-
cash rent in the respective calendar year. If the
share income. If income from crop-share
taxpayer was married during the calendar year,
arrangement was reported on federal form
include the acres of the farmland sold that were
4835, the income was not subject to self-
leased for cash rent by either spouse.
employment tax and therefore may not be
Crop-share acres: Enter the number of acres eligible for Iowa capital gain deduction unless
of the farmland sold that the taxpayer had under the taxpayer qualifies as a retired or disabled
a crop-share lease arrangement in the farmer as described in Iowa Administrative
respective calendar year. If the taxpayer was Code rule 701–302.38(1)“f”(1).
married during the calendar year, include the
Line 17. The taxpayer must satisfy at least one
acres of the farmland sold that were under a
of the four tests for material participation for
crop-share lease agreement by either spouse.
each of the 10 years prior to the sale. Check the
CRP acres: Enter the number of acres of the box for each test claimed. More than one test
farmland sold that the taxpayer had enrolled in may be claimed. For more information on the
the Conservation Reserve Program (CRP) in tests for material participation, see the
the respective calendar year. If the taxpayer instructions below and Iowa Administrative
was married during the calendar year, include Code rule 701–302.38(1)“f”(5).
the acres of the farmland enrolled in the CRP by
• TEST 1. The landlord does any three of the
either spouse.
following: (1) Pays or is obligated to pay for
Other acres: Enter the number of acres of the at least half the direct costs of producing
farmland sold that the taxpayer used for other the crop; (2) Furnishes at least half the
purposes in the respective calendar year, such tools, equipment, and livestock used in
as non-tillable acres. If the taxpayer was producing the crop; (3) Consults with the
married during the calendar year, include the tenant; and (4) Inspects the production
acres of the farmland sold that were used for activities periodically.
other purposes by either spouse. • TEST 2. The landlord regularly and
Note: The sum of the acres the taxpayer frequently makes, or takes part in making,
personally farmed, the cash rent acres, the crop management decisions substantially
share acres, the CRP acres, and the other acres contributing to or affecting the success of
must equal the total number of acres sold as the enterprise.
entered in Part I, line 2. • TEST 3. The landlord worked 100 hours or
more spread over a period of five weeks or
Line 15. Cash Rent/Lease Arrangement
more in activities connected with crop
Line 15a. Check the box to indicate if the production.
property was rented on a cash rent/lease basis. • TEST 4. The landlord has done tasks or
A farmer who rents farmland on a cash basis will
performed duties which, considered in their
not generally be considered to be materially
total effect, show that the landlord was
participating in the farming activity. The burden
materially and significantly involved in the
is on the landlord to show there was material
production of the farm commodities.
participation in the cash rent/lease farm activity.

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2022 IA 100B Instructions, page 7

Line 18. Conservation Reserve Program IRC section 331 or from certain stock sales
(CRP) which are treated as an acquisition of assets
under IRC section 338.
Line 18a. Check the box to indicate if the
property was enrolled in the CRP. Line 3. If married filing jointly and both spouses
are the only owners, check yes. If married filing
Line 18b. Check the box to indicate if the separately and both spouses are owners, check
income from the CRP was subject to self- no; each spouse must complete an IA 100B and
employment tax. If an individual is receiving indicate on line 3 the separate ownership
CRP payments and is not considered to be percentage of that spouse.
retired from farming or disabled as described in
Iowa Administrative Code rule 701– Line 4. Enter the taxpayer’s ownership
302.38(1)“f”(1), the CRP payments are subject to percentage of the property sold at the time of the
self-employment tax. If individuals actively sale rounded to the nearest tenth of one percent
manage farmland placed in the CRP by directly (for example: 50.0%; 33.3%). If not the sole
participating in seeding, mowing, and planting owner, the taxpayer’s ownership percentage
the farmland or by overseeing these activities must be less than 100% and greater than 0%.
and the individual is paying self-employment Line 5. Enter the names of all persons and
tax, the owner will be considered to have had entities that owned the property at the time of
material participation in the farming activity. sale. If the capital gain flowed through to the
Annual CRP payments paid to taxpayers taxpayer from a partnership, S corporation,
receiving Social Security or disability payments limited liability company (LLC), estate, or trust, all
are generally not subject to self-employment tax owners of the entity must be reported.
and therefore are not eligible for the Iowa capital
Line 6. Check all boxes that indicate how the
gain deduction unless the taxpayer qualifies as
taxpayer acquired the property. If “Other”,
a retired or disabled farmer. For more
explain how the taxpayer acquired the property.
information on the requirements for material
participation with regard to the CRP, see Iowa Line 7. Enter the names of all persons and
Administrative Code rule 701–302.38(1)“f”(6). entities that purchased the property.
Line 19. Enter the taxpayer’s daily, weekly, Line 8. Check the box to indicate whether the
monthly, and yearly farming activities on the capital gain comes from an installment sale. If
farmland sold during the period identified in Part “Yes,” enter the date of the first installment, the
I, line 14. Describe the taxpayer’s activities in expected date of the final installment, the total
detail, and include the year(s) the taxpayer capital gain generated by the sale, and the
performed the activities. Do not include activities capital gain the taxpayer received during tax
performed by any person other than the year 2022. Do not include any interest received.
taxpayer, such as tenants and farm hands. For
Line 9 Enter the amount of the taxpayer’s
inherited property, activities performed by the
capital gain deduction claimed. Note that the
decedent prior to death are not considered
deduction applies to the net capital gain from a
when determining whether a taxpayer has
sale. Any nonrecaptured losses are treated as
materially participated. For surviving spouses,
ordinary income and are not eligible for the Iowa
see Iowa Administrative Code rule 701–
capital gain deduction. The eligibility of the Iowa
302.38(1)“f”(2). The taxpayer’s activities must
capital gain deduction reported here may be
be supported by records. Records prepared
subject to further examination by the
long after the activity generally are not
Department.
acceptable.
Part II: Details of Property Sold
Line 1. Check the box to indicate whether the
capital gain is from an Iowa corporation.
Line 2. Indicate whether the Iowa corporation’s
capital gain was from the liquidation of assets
which are recognized as a sale of assets under
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