Candidate Notes on 08-HR5134

08-HR5134 on Jan 23, 2008

This bill amends the Internal Revenue Code to exclude from gross income 100% of the gain, up to $500,000, from the sale of qualified farm property to a first-time farmer who certifies that such property will be used for farming purposes for 10 years.

• Allows a 50% exclusion for the sale of qualified farm property to any other person who certifies that such property will be used for farming purposes for 10 years.
• Allows a 25% exclusion for the sale of qualified farm property to any other person for any other use.
• Defines "qualified farm property" as real estate which is used for farming purposes for a specified three-year period and in which there was participation by the taxpayer or the taxpayer's family.