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                                                                                             2020 IA 100D 
                                                               Iowa Capital Gain Deduction - Timber 
                                                                                             tax.iowa.gov 

Name(s) ___________________________________________  SSN ___________________________ 

Part I: Sale of Timber 
1. Timber address (include a general description of the location) ___________________________
   ____________________________________________________________________________
2. Ownership period
   a. Date acquired ........................................... 2a. ______________ 
   b. Date sold ................................................... 2b. ______________ 
3. Length of holding period. .................................. Years 3a.  ________   Months 3b. ___________ 
4. Explain how the purchaser intends to use the timber ___________________________________
5. Was the gain from the sale of timber reported under IRC section 1231?
   No  ☐ ... Sale is not eligible for Iowa capital gain deduction. Stop.
   Yes   ☐... Continue to Part II, line 1. 

Part II: Details of Timber Sold Excluding Land Value 
1. Is the capital gain from a C 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. 

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 three
   decimal places (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 ☐                   Raised ☐          Like-kind (IRC 1031) Exchange ☐ 
   Purchase   ☐                    Gift  ☐           Other  ☐(Explain: ________________ )

7. Provide all purchaser name(s) ______________________________________________________
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 2020 .................. 8d. $ _____________ 

9. Iowa capital gain deduction. Enter the amount of the taxpayer’s capital
   gain deduction claimed for this timber and include on IA 1040 line 23. ........ 9. $ ______________ 

                                                                                             41-158a (08/31/2020)



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                                                            2020 IA 100D Instructions, page 2 

           Instructions for 2020 IA 100D – Iowa Capital Gain Deduction Sale of Timber 

The Iowa  capital gain deduction is subject to    contract  to cut timber and not  the value of 
review by  the Iowa  Department of Revenue.       associated land. 
The Department will use this form to verify that  Line 1. Check the box to indicate whether the 
the taxpayer(s) qualifies for the deduction. The  capital gain is from a C corporation. 
Department may request additional information     Line 2.  Indicate whether the  C corporation 
if needed.                                        capital gain was from the liquidation of assets 
This completed form must be included with the     which are  recognized as a sale of assets 
IA 1040 to support the Iowa capital gain          under  IRC section 331 or  from certain  stock 
deduction  claimed. Complete a separate IA        sales which are treated as an acquisition of 
100D for each sale  of timber.  Complete the      assets under IRC section 338. 
form each year of a qualifying installment sale,  Line 3. If married filing jointly and both spouses 
including all parts.                              are the only owners, check yes. If married filing 
For taxpayers filing separately on  the same      separately and both spouses are owners, check 
return, each spouse must complete an IA 100D      no; each spouse must complete an IA 100D and 
for the  Iowa capital gain deduction claimed      indicate on  line  3  the separate ownership 
based on the spouse’s ownership percentage.       percentage of that spouse. 
Flowcharts to assist  in determining if a  gain   Line  4.  Enter the taxpayer’s ownership 
qualifies are also available in the expanded      percentage of the property sold at the time of 
instructions online. For more information on the  the sale to three decimal places (for example: 
Iowa   capital gain    deduction, see the         50.0%; 33.3%). If not the sole owner,  the 
instructions below and  Iowa Administrative       taxpayer’s ownership percentage must be less 
Code rule 701—40.38.                              than 100% and greater than 0%. 
Part I: Sale of Timber                            Line  5. Enter  the names of all persons and 
Line 1. Enter the address or legal description    entities that owned the  property  at the time of 
from where the timber was or will be harvested.   sale.  If the capital gain flowed through to  the 
If providing a legal description, also provide a  taxpayer  from a partnership, S corporation, 
general description of the property location in   limited  liability company (LLC), estate,  or trust, 
relation to a major road or town and the county.  all owners of the entity must be reported. 
Line 2.  Enter the acquisition date and sale      Line 6. Check all boxes that indicate how the 
date for the timber, as indicated in supporting   taxpayer acquired the timber. If “Other”, explain 
documentation.                                    how the taxpayer acquired the timber. 
Line 3. Enter the length of the holding period in Line  7. Enter  the  names of all persons and 
years and months. The holding period must be      entities that purchased the timber.  
at least 12 months to qualify for  the Iowa       Line 8. Check the box to indicate whether the 
capital gain deduction. If the ownership period   capital gain comes from an installment sale. If 
indicated in  Part I,  line 2  is less than 12    “Yes,” enter the date of the first installment, the 
months,    include   a   separate statement       expected date of the final installment, the total 
explaining why the ownership period  differs      capital gain generated by  the  sale,  and the 
from the holding period.                          capital gain  the taxpayer received during tax 
Line 4.  Explain how the purchaser intends to     year 2020. Do not include any interest 
use the  timber (for  example: “Lumber”,          received. 
“Christmas Trees”).  For more information  see    Line  9. Enter the amount of the taxpayer’s 
Iowa Administrative Code rule 701—40.38(6).       capital gain  deduction  claimed.  Note that the 
Line 5. Check the box to indicate whether the     deduction applies to the net capital gain from a 
taxpayer reported the capital gain under  IRC     sale. Any nonrecaptured losses are treated as 
section 1231.                                     ordinary income and are not eligible for  the 
                                                  Iowa capital gain deduction.  The eligibility of 
Part  II: Details of  Timber Sold  Excluding 
                                                  the Iowa capital gain deduction reported  here 
Land Value 
                                                  may be  subject  to further examination by the 
This deduction is only available for  capital 
                                                  Department. 
gains realized on  the sale of  cut timber  or a 

                                                                                41-158b (08/31/2020) 






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