2020 IA 100F 
                                                               Iowa Capital Gain Deduction – ESOP 
                                                                                             tax.iowa.gov 

Name(s) ___________________________________________  SSN ____________________________  

Part I: Sale of Employer Securities to a Qualified Iowa Employee Stock Ownership Plan (ESOP) 
1. Name of Iowa C corporation ______________________________________________________
   Note: A limited liability company (LLC) is not considered to be an Iowa corporation for the 
   purposes of this deduction. 
2. Does the qualified Iowa ESOP own at least 30% of all outstanding employer securities issued by
   the Iowa C corporation?
   No  ☐ ... Sale is not eligible for Iowa capital gain deduction. Stop. 
   Yes   ☐... Continue to Part II, line 1. 

Part II: Details of Property Sold 
1. Were the employer securities sold Iowa C corporation stock?
   No  ☐ ... Sale is not eligible for Iowa capital gain deduction under sale of employer securities
              to a qualified Iowa ESOP. Stop. 
   Yes   ☐... Continue to Part II, line 2. 

2. Are you the sole owner of the employer securities? Married filers, see instructions.
   No  ☐ ... Continue to Part II, line 3.
   Yes   ☐... Enter 100% on Part II, line 3. 

3. Enter taxpayer’s ownership percentage of the total employer securities
    sold to three decimal places (for example 65.2%) ...................................... 3. _____________ % 
4. Provide all other owner name(s)  ____________________________________________________
    ______________________________________________________________________________
5. Provide the name of the qualifying Iowa ESOP _________________________________________
    ______________________________________________________________________________
6. Is the capital gain from an installment sale?
   No  ☐ ... Continue to Part II, line 7.
   Yes   ☐... Enter the property installment sale information: 

   a. Start date ........................................................ 6a.  _____________ 
   b. End date ......................................................... 6b.  _____________ 
   c. Total capital gain to be received by taxpayer
         over the life of the installment sale ................. 6c. $ ____________ 
   d. Capital gain received by the taxpayer in tax year 2020 .................. 6d. $ _____________ 
7. Enter the amount of taxpayer’s capital gain received from this sale in
   tax year 2020 ............................................................................................... 7. $ ______________ 
8. Iowa capital gain deduction. Multiply Part II, line 7 by 50% (0.5).
   Enter here and include on IA 1040 line 23 ................................................... 8. $ ______________ 

                                                                                             41-160a (09/25/2020)

                                                          2020 IA 100F Instructions, Page 2 
            Instructions for 2020 IA 100F – Iowa Capital Gain Deduction Sale of 
                     Employer Securities to a Qualified Iowa ESOP 

The Iowa  capital gain deduction is subject to   Line 2. If married filing jointly and both spouses 
review by  the Iowa  Department of Revenue.      are the only owners, check yes. If married filing 
The Department will use this form to verify that separately and both spouses are owners, check 
the taxpayer(s) qualifies for the deduction. The no; each spouse must complete an IA 100F and 
Department may request additional information    indicate on  line  3  the separate ownership 
if needed.                                       percentage of that spouse. 
This completed form must be included with the    Line  3.  Enter the taxpayer’s ownership 
IA 1040 to support the Iowa capital gain         percentage of the employer securities  sold at 
deduction  claimed. Complete a separate IA       the time of the sale to three decimal places (for 
100F for each sale to a qualified Iowa ESOP.     example: 50.0%; 33.3%). If not the sole owner, 
Complete the form each year of a qualifying      the taxpayer’s ownership percentage must be 
installment sale, including all parts.           less than 100% and greater than 0%. 
For taxpayers filing separately on  the same     Line  4. Enter  the names of all persons and 
return, each spouse must complete an IA 100F     entities that owned the  employer  securities  at 
for the  Iowa capital gain deduction claimed     the time  of sale. If the capital  gain flowed 
based on the spouse’s ownership  percentage      through to the taxpayer from  a partnership,  S 
in the employer securities.                      corporation, LLC, estate, or trust, all owners of 
Flowcharts to assist  in determining if a  gain  the entity must be reported. 
qualifies are also available in the expanded     Line  5. Enter the name  of  the  qualifying Iowa 
instructions online. For more information on the ESOP.  
Iowa   capital gain  deduction,        see the
instructions below and  Iowa Administrative      Line 6.  Check the box to indicate whether the 
Code rule 701—40.38.                             capital gain comes from an installment sale. If 
                                                 “Yes,” enter the date of the first installment, the 
Part  I: Sale of Employer Securities  to a       expected date of the final installment, the total 
Qualified Iowa  Employee  Stock Ownership        capital gain generated by  the  sale,  and the 
Plan (ESOP)                                      capital gain  the taxpayer received during tax 
Line 1. Enter the name of the Iowa C             year 2020. Do not include any interest 
corporation whose employer securities the        received. 
taxpayer sold. Note: A limited liability company Line  8. Enter the amount of the taxpayer’s 
(LLC) is not considered to be an Iowa            capital gain deduction claimed, 50% of line 7. 
corporation for the purposes of this deduction.  Note that the deduction applies to the net 
In addition, an Iowa corporation is a            capital gain from a  sale. Any nonrecaptured 
corporation whose commercial domicile is in      losses are treated as ordinary income and are 
Iowa.                                            not eligible for the Iowa capital gain deduction. 
Line 2.  Check the box to indicate whether,      The eligibility of the Iowa capital gain deduction 
upon completion of the sale, the qualified Iowa  reported here  may be  subject to further 
ESOP owned at least 30% of all outstanding       examination by the Department. 
employer securities issued by the Iowa  C 
corporation entered in Part I, line 1. 
Part II: Details of Property Sold 

Line 1. Check the box to indicate whether the 
employer securities sold  were Iowa C 
corporation stock. 

                                                                                41-160b (09/25/2020)