One Big Beautiful Bill (OB3) Capital Gains from Sale of Certain Farmland Property (new)

Effective for sales or exchanges after July 4, 2025.

This one is very interesting, and can be a great tool for estate and tax planning.  You can elect to report the net income tax on gain from the sale or exchange of qualified farmland property sold to a qualified farmer over a 4-year period in equal installments.  This means you can spread out the tax on a potentially large capital gain over 4 tax years.

Qualifed farmland property is real property in the US that has been used by the taxpayer as a farm for farming purposes, or leased to a qualified farmer for farming purposes during substantially all of the 10-year period ending on the date of sale or exchange.  The property must be subject to a covenant or other legally enforceable restriction which prohibits the use of the property for any purpose other than forming for a period of at least 10 years after the date of sale or exchange.