Selling the Family Farm: What You Owe and What You Can Do

By Hans Goldstein, EA · Updated October 15, 2026

Selling farmland to a neighbor or another farmer: the Section 1062 election

A new rule can help if you sell to a working farmer. Under IRC §1062, you can elect to pay the tax caused by the sale in 4 equal yearly installments when you sell qualified farmland property to a qualified farmer.

It was added by Pub. L. 119-21 (July 4, 2025) and applies to sales in tax years beginning after July 4, 2025, so a 2026 sale can use it (statute text read October 15, 2026).

What it is not: it does not change how much tax you owe, and the whole gain is still reported in the sale year. It only spreads the payment over four years. It also needs a farmer buyer who will accept a 10-year farm-only restriction, which many neighbors will and many developers will not.

Section 1062 vs a structured installment sale vs the 453A farm exemption

Can you use both? The statute covers the tax on gain recognized in the sale year. Under an installment sale, gain recognized in later years is not part of that year's tax.

I did not find IRS guidance on stacking the two as of October 15, 2026, so treat the combination as a question for your preparer before you sign, not a plan.

Illustration, hypothetical: if the extra tax caused by the sale year's gain is $400,000, four installments are $100,000 each, due with the 2026, 2027, 2028 and 2029 returns.

Retiring farmer selling land: the order that protects the most

1. Decide who the buyer is first. A neighbor or tenant who farms can qualify for the §1062 election; a developer or investor cannot.
2. Split the sale by asset. Land, buildings, house, equipment and growing crops are taxed differently, and the house may qualify for the home sale exclusion.
3. Choose the tax route before closing. A payout over years has to be in the contract; the §1062 election is made on the return.
4. Check material participation. It decides whether the 3.8% net investment income tax applies to you.
5. Run holding vs selling. Heirs get a basis reset at death (IRC §1014), which can beat any sale route if you do not need the cash.

Email me the acres, basis and buyer type and I will run the options.

The problem most farm owners have

You are probably here because of one of these:

• You are retiring and the land is your retirement. You need income from it for 20 or 30 years, not one giant check and one giant tax bill.
• The heirs do not want to farm. One child wants the land, the others want cash, or nobody wants it.
• A developer, a neighbor or an investor made an offer and you do not know what you would keep after tax.
• You are tired. Cash rent is thin, the equipment is old, and you want out without handing the IRS a quarter of your life's work.

There is no single right answer. The table below is the honest version.

Options compared

What a farm sale is actually taxed

• Land held more than a year: long-term capital gain. Federal rates are 0%, 15% or 20% depending on your total income, and a large sale puts most of the gain at 20%.
• The 3.8% net investment income tax may or may not apply. Gain on property you hold in a business you materially participate in is not investment income (IRC §1411(c)(1)(A)(iii)). If you retired and rent the land out, or you were never an active operator, expect to pay it. Your CPA has to look at your last few years. The example below assumes it applies, which is the cautious case.
• Buildings, tile, fences and equipment are separate. Gain on depreciated equipment (§1245) is ordinary income, and gain on depreciated buildings is taxed up to 25% (§1250). Sell the equipment on its own, and expect that part to be taxed in year one.
• State tax. Iowa taxes the gain at a flat 3.8% in 2026. Nebraska is 4.55% in 2026 and falls to 3.99% in 2027. Other states differ, and some tax you where the land sits even if you live elsewhere.
• Your basis is the whole fight. Land bought long ago has a low basis. Inherited land has the basis at the date of death. Find old closing papers, the estate inventory and the county records before you talk numbers.

A worked example: 320 acres in Iowa, sold in 2026

A married couple in their 70s sells 320 acres in Iowa for $4,800,000. Their basis is $600,000, selling costs are 3% ($144,000), and their other income is $60,000 a year. The taxable gain is $4,056,000. We compare one year against a 10-year payout set up before closing.

The same sale in Nebraska comes to $1,115,456 in one year, and the 10-year payout still comes out $392,552 ahead. A smaller farm, 160 acres sold for $2.4 million with a $300,000 basis, has a one-year tax of $525,308 and pays about $301,487 a year over 10 years.

Run on October 14, 2026 with the Goldstein & Co. engine: 2026 federal brackets, the 3.8% net investment income tax and AMT (IRS Rev. Proc. 2025-32), and 2026 state brackets. The 5.0% payout rate is an assumption, not a quote.

After-tax money at the end assumes nothing is spent and both paths earn 5.0%, taxed every year. These are estimates, not a quote. The one-year tax above includes the 3.8% net investment income tax, which is the cautious case (a retired owner who cash-rents the land may owe it).

If you materially participate in the farm in the year of sale, the gain is not investment income (IRC §1411(c)(1)(A)(iii)) and the same one-year tax falls to about $938,128; spread over 10 years the gain tax is about $212,203 plus $443,675 on the interest, and the after-tax money at year 10 is $5,718,502 against $5,460,084 for the cash sale. Your CPA confirms which case you are in.

Be straight about the trade-offs. The payments are fixed and cannot be sped up. If you die before the last payment, the unpaid gain is income in respect of a decedent (IRC §691(a)(4)), taxed to the heirs, with no step-up on that part.

Spreading the gain does not erase it. It moves each year's slice into lower brackets and keeps the surtax and the Medicare premium surcharge (IRMAA) lower.

Why farmers have an edge on the payout route

Most large installment sales over $5 million face an interest charge on the unpaid tax (section 453A). The law carves out property used or produced in the trade or business of farming (IRC §453A(b)(3), which points to the farm definition in §2032A).

Farm property is exempt, even above $5 million. Land you rented to a tenant, or farmland you no longer farm, may not qualify, so have your CPA confirm. The same exemption covers a personal home.

Selling to your children

• Price it near fair market value. A big discount is a gift, and may use up part of your lifetime exemption. A written appraisal protects everyone.
• If you take a note from them, the gain is taxed as they pay. If they sell the land within 2 years, the related-party rule (IRC §453(e)) can make you pay the rest of the tax at once.
• Fairness matters as much as tax. If one child farms and the others do not, say in writing how the others are treated. Many farm families fight over this more than over tax.

The 1031 question: can you just buy more land?

Farmland is real estate, so a 1031 exchange works for it. You can swap into other farmland, rental property or commercial property. You must name the replacement within 45 days and close within 180.

If you cannot find one, or the replacement falls through, the gain is taxable. See 1031 exchange alternatives and what to do after a missed deadline. A structured sale can be written in as the backup, before closing.

Questions answered below: Questions about the tax on a farm sale · What you are selling: land, buildings, equipment, minerals and entities · Your options: payout, 1031, hold, easement, charity and family sales · Who is selling: retiring owners, heirs, family and out-of-state owners · Getting your numbers · By state

Questions about the tax on a farm sale

Plain answers first, then detail. Numbers are 2026 federal figures and our October 2026 engine run. Not tax or legal advice: ask a CPA and an attorney.

How much is the capital gains tax on selling a farm?

For most family farms, the tax is federal long-term capital gain at 0%, 15% or 20%, plus state income tax, plus the 3.8% net investment income tax if it applies to you. On a married couple's 320-acre Iowa farm sold for $4.8 million with a $600,000 basis, the one-year bill is about $1,085,036 (26.8% of the gain): $784,000 federal, $146,908 net investment income tax and $154,128 Iowa.

The gain is the sale price, less selling costs, less your basis. As of October 2026, the 2026 federal rates are:

A large farm sale stacks on top of your other income, so most of the gain lands at 20%. Source: IRS Rev. Proc. 2025-32. State tax is extra and varies a lot: see the state table below. The step-by-step worked example is higher on this page.

A big gain also raises your income for the year. That can push more of your Social Security into tax (up to 85% of it) and, two years later, raise your Medicare Part B and D premiums through IRMAA.

The 0% bracket is used up quickly, since it stops at $98,900 of taxable income for a married couple. See IRMAA and a big sale and seniors and 0% capital gains.

Is the sale of farmland taxable?

Yes. The sale of farmland is taxable income to the extent the price, less selling costs, is more than your basis. That gain is usually long-term capital gain if you held the land more than a year. If you sell at or below your basis, you owe no tax on the sale, and a loss on business-use farmland is generally an ordinary loss under IRC §1231.

Land is not "tax free" because it is agricultural, rural or in the family. The things that lower the bill are how you structure the sale, when it closes, what your basis is and which state the land is in. Each is covered below.

Is there a capital gains exemption for farmers or farmland?

There is no federal capital gains exemption for farmers or farmland in the United States. Canada has a lifetime exemption for qualified farm property, and some people search for that; the U.S. does not have an equivalent. What the U.S. does have is a 0% federal bracket for lower taxable income, the home-sale exclusion for the farmhouse, a step-up in basis at death, and a handful of state subtractions.

The state subtractions are real but different in each state: Missouri subtracts 100% of capital gain from tax year 2025, and Iowa reports an exclusion for certain retired or disabled farmers age 55 and older. See the state table for the others, and confirm anything you rely on with a preparer as of October 2026.

How do I avoid or reduce capital gains tax when I sell farmland?

You cannot make the gain disappear while you are alive, but you can lower it, move it, or spread it. The honest list is: hold the land until death for the step-up, exchange into other real estate, sell on an installment basis, donate an easement or the land, give it to family on purpose, or sell the home separately under the exclusion. Each one has a price.

For a 10-year payout on the Iowa example, total tax over the 10 years (gain plus interest) is about $737,806 against $1,085,036 for a one-year cash sale, and the after-tax money at year 10 is $364,060 higher, on a 5.0% payout rate that is an assumption, not a quote (as of October 2026).

That route is built before closing. The buyer pays in full at closing and you are not the bank. See the structured installment sale.

How do I figure out my basis in farmland, and what selling costs come off the gain?

Your basis is what the tax law says you have invested in the land: the price you paid, plus the cost of permanent improvements, less depreciation you took on depreciable parts. If you inherited the land, your basis is usually its fair market value on the date of death (IRC §1014). If it was a gift, you usually take the giver's basis (IRC §1015).

Land itself is never depreciated, so there is no depreciation recapture on bare land. Buildings, tile, fences, bins and equipment are separate assets with their own basis. Where do you find the numbers?

Old closing statements, the estate inventory or date-of-death appraisal, county deed records, Form 4562 depreciation schedules and past returns. If the land was split or you bought it in several parcels, the basis is divided by acres or value in a reasonable way, and you keep the records that show how.

A missing basis is one of the most expensive mistakes in a farm sale. A date-of-death appraisal or a rural appraiser's retrospective appraisal can rebuild one. Do this before you sign a listing.

Selling costs come off the other side. Brokerage or auction commission, attorney, title, survey and any transfer tax reduce the sale price when you figure the gain. Our Iowa example used 3% ($144,000), which leaves a taxable gain of $4,056,000 on a $4,800,000 sale with a $600,000 basis.

Ask for the fee on the whole deal in writing, and ask whether a payout or an exchange costs more to close. Ordinary repairs to get ready to sell do not reduce the gain.

How do I report the sale of farmland on my tax return?

You get a Form 1099-S from the closing agent for most land sales, and you report the sale yourself.

Farmland used in your farm business is reported on Form 4797 (business property, IRC §1231), and a net gain there is treated as long-term capital gain on Schedule D. Land held as an investment goes on Form 8949 and Schedule D. A payout sale also needs Form 6252, and an exchange needs Form 8824.

Plan estimated tax payments for the year of sale. A large gain closed in November can create a penalty if you do not pay by the quarterly dates or meet a safe harbor (see IRS Publication 505). Your preparer will also check the five-year look-back on section 1231 losses, which can turn part of a gain into ordinary income.

What you are selling: land, buildings, equipment, minerals and entities

A farm is many assets. Each one is taxed its own way.

What depreciation recapture will I owe when I sell farm land, buildings and equipment?

Bare land has no depreciation, so no recapture. Buildings, grain bins, tile, fences and equipment do, and the depreciation you took (including section 179 and bonus) comes back as tax when you sell. Equipment gain is ordinary income up to the depreciation taken (IRC §1245). Straight-line depreciation on buildings is "unrecaptured section 1250 gain," taxed at up to 25% (IRC §1(h)).

Two older recapture rules catch farmland: soil and water conservation and land clearing deductions are recaptured as ordinary income if you sell within 10 years (IRC §1252), and excluded cost-share payments can be recaptured if you sell within 20 years (IRC §1255).

On an installment sale, recapture income is taxed in year one even if the money arrives later (IRC §453(i)). Plan the cash for it.

How is the sale of farm equipment taxed?

Selling farm equipment is taxed as ordinary income to the extent of the depreciation you took, and any gain above the original cost is capital gain. Most of the time that means the whole gain is ordinary, because equipment that has been fully written off has a basis near zero (IRC §1245). It is reported on Form 4797.

If the equipment was inherited, its basis is stepped up to value at death, and the heir starts a fresh depreciation schedule, so a quick sale after death usually shows little or no gain.

Farm machinery is generally 5- or 7-year property, depending on when it was placed in service; single-purpose agricultural structures and orchards have their own schedules in IRS Publication 225. Bonus depreciation or section 179 can change the basis, so look at Form 4562 from past years.

If you sell the equipment in the same year as the land, the equipment gain stacks on top and is taxed in that year, even if you spread the land gain. Selling it in a different tax year can smooth the bill.

How is the purchase price split between land, buildings, equipment, crops and livestock?

The contract or the closing statement should split the price among the land, the buildings, any equipment, growing or stored crops, and livestock, because each is taxed differently. Land and buildings used in the farm business are generally capital gain or section 1231 gain.

Equipment is ordinary up to depreciation. Grain, hay and crops are ordinary farm income. Breeding cattle and horses held 24 months or more, and other breeding livestock held 12 months or more, are generally capital-gain property, while animals held for sale are ordinary (IRC §1231(b)(3)).

The split must be reasonable and backed by an appraisal, because the buyer and the IRS look at it too. A sale of a whole going farm may also require Form 8594 (IRS Form 8594), so ask your preparer. Do the allocation before you sign, not after closing.

Is the tax different for cropland, pasture, ranch land, timber or an orchard?

The land itself is taxed the same way whether it is cropland, pasture, ranch or timber: long-term capital gain if you held it over a year. What changes is what sits on it and around it. Orchards, vineyards and buildings carry depreciation that is recaptured, timber has its own rules, and ranches often come with minerals, water rights and grazing leases that are separate assets.

Do you own the minerals or the water? Many farms were sold decades ago with the minerals kept by a prior owner, and a buyer pays differently with and without them. Treat each interest as its own sale and have a preparer allocate basis.

A lump-sum sale of land with standing timber is usually a sale of capital assets, and the buyer's cruise (timber estimate) matters for allocating basis. If your timber is a large part of the value, get a forester's valuation first.

How do I sell part of my farm, and how is the tax figured?

You can sell part of a farm, and only that part's gain is taxed. Your basis is split between the part you sell and the part you keep, usually by acres or by relative value, and you keep the records that show how. The remaining land keeps its share of the basis for a later sale or for your heirs.

Before you sign, check four things: whether the county allows the split (platting, a minimum lot size, access and a road easement); whether the parcel you keep still qualifies for agricultural assessment; whether you must pay back property tax savings on the piece you sell; and whether you want to carve out the house site first.

Sellers often sell the land that is hardest to farm, the house and a few acres, or a road-frontage strip. A smaller sale may also keep more of the gain out of the 20% bracket if you control the year it closes.

How is farmland taxed when I sell it to a developer?

If you sell the whole parcel to a developer, the gain is generally capital gain the same as any other sale, with a bigger price because the land is worth more for development.

If you subdivide, improve and sell lots yourself, the IRS may treat you as a dealer, and the profit becomes ordinary income taxed up to 37% plus the 3.8% tax.

There is a safe harbor for owners who held the land at least five years and do not substantially improve it (IRC §1237), but it has limits on how many lots you sell and a 5% ordinary-income rule after the fifth lot.

The bigger traps are property-side. Selling or changing use on land assessed at farm value can trigger a rollback of past property tax savings, and a developer's contract can have a long option, rezoning contingency or earn-out. Sell before the improvements, and see the rollback question.

What is the tax if the government, a utility, a pipeline or a solar developer takes or buys my farmland?

If the government or a utility takes your land by eminent domain, or you sell under threat of it, you can usually avoid tax on the gain for the year if you reinvest in similar property within three years (IRC §1033).

The three-year window is for condemned real property held for business or investment; most other involuntary conversions have two. You pay tax on the gain up to the amount of proceeds you do not reinvest.

Easement payments for a pipeline or power line, solar or wind lease payments and signing bonuses are different. Lease payments and signing bonuses are generally ordinary income, while a payment for a permanent easement is usually treated as a partial sale that reduces your basis, with any excess taxed as gain. Get the contract reviewed before signing, since many of these deals are drafted to last 25 to 40 years.

How is the sale taxed if the farm is in an LLC, partnership or trust?

It depends on how the entity is taxed. A single-member LLC is usually ignored for tax, so you are taxed as if you sold it yourself. A multi-member LLC or family partnership files a Form 1065, and each owner reports a share of the gain on a K-1.

A revocable living trust is also ignored for income tax. An irrevocable trust is its own taxpayer or follows its grantor depending on how it was written.

Two traps for families. Land held in an irrevocable trust outside your estate generally gets no step-up at death (Rev. Rul. 2023-2). And you cannot do a 1031 exchange on a partnership interest (IRC §1031(a)(1)); see selling a TIC, LLC or partnership interest. If the owners disagree about selling, the operating agreement controls, not the tax code.

Your options: payout, 1031, hold, easement, charity and family sales

Compare the routes before you sign anything. The honest list includes when each one does not fit.

Can I sell farmland and take payments over several years to lower my tax?

Yes. An installment sale lets you report the gain as you receive payments instead of all in the year of closing (IRC §453), and property used in farming is exempt from the interest charge that hits other large installment sales (IRC §453A(b)(3)).

The payout has to be set up before closing. If you take the full price at closing and then ask for it back over time, the tax is already due.

There are two ways to get paid over years. In a land contract or a note from the buyer, you are the bank: the buyer pays you directly, you carry the buyer's default risk, and in many states you must go through foreclosure or forfeiture rules to get the land back.

In a structured installment sale, the buyer pays in full at closing and you are not the bank; the payments come from an annuity the buyer funds. See what a structured installment sale is.

The 10-year Iowa example pays about $602,973 a year and leaves $364,060 more after tax at year 10 than a cash sale, on a 5.0% assumption. Stretching to 15 years pays about $448,570 a year and leaves $574,215 more. It does not fit every farm: see the limits in when the payout does not fit.

What is the difference between a land contract and a structured installment sale on farmland?

In a land contract, you sell the farm to the buyer and the buyer pays you over time. You hold the note, keep title until it is paid in many states, and carry the risk that the buyer misses payments, lets the land run down or goes bankrupt.

In a structured installment sale, the buyer pays the full price at closing, you are not the bank, and the payments to you come from a funded contract.

Land contract law varies by state, and a land contract can be easy to draft badly. Have an attorney in your state write it. Anyone buying land by land contract, not selling, is on a different page.

Does the 453A farm exemption still apply if I rent my land to a tenant or have retired from farming?

The statute exempts "property used or produced in the trade or business of farming" and points to the farm definition in section 2032A (IRC §453A(b)(3)). Farmland you operate is clearly covered.

Land you cash-rent to a tenant, or land you have retired from operating, is less clear, so your CPA should confirm before you rely on it. Whether the owner must also be the operator is a question for your CPA, so do not assume rented or retired land qualifies.

This matters for sales above $5,000,000 of outstanding installment obligations, where a business or rental property would pay an interest charge on the unpaid tax. Below that, the charge does not apply either way. See the 453A interest charge and farm and ranch sales with a payout.

Can I sell my farm to a neighbor or my tenant and take payments?

Yes, and a neighbor or tenant is often the most motivated buyer, since they already farm it. You can sell on a note or land contract, with a market interest rate and a down payment, and report the gain as you are paid (IRC §453).

You are the bank in that deal, so look at the buyer's balance sheet, take a first mortgage, and require insurance and tax payments.

Three practical points. Check your lease: a tenant may have notice rights, crop rights or a right of first refusal, and the lease usually ends at a crop-year date. Get an appraisal so the price is defensible.

And write the payout before closing; if you want the payments backed by something stronger than the buyer's promise, a structured sale is an alternative to carrying the note: the buyer pays in full at closing and you are not the bank (how that works).

Some states, such as Nebraska, have run tax credits for owners who sell or lease to beginning farmers; confirm current terms with the state. If the buyer is a relative, the related-party rules in the next question apply.

What are the tax rules if I sell the farm to my children or other relatives?

The same gain tax applies to you, plus extra rules that apply only to relatives. The big one: if you take a note from a child and the child resells the land within two years, your unpaid tax can become due at once (IRC §453(e)).

A sale of depreciable property to a controlled entity, such as your own LLC or corporation, can make your gain ordinary income (IRC §1239). A 1031 exchange with a relative is blocked if either of you disposes of the property within two years (IRC §1031(f)).

The price matters. Sell near an appraised value and charge at least the IRS minimum interest rate (the applicable federal rate) on any note, or the IRS can impute interest and treat part of the deal as a gift (IRC §7872).

See the page's "Selling to your children" section for the basics. A farm family dispute is usually about fairness, not tax, so put the plan in writing. A note from a child makes you the bank; where you can, ask for cash at closing from the child's lender.

What if you sell for less than the farm is worth? A sale to a child below fair market value is part sale, part gift.

The gift part may need a gift tax return (Form 709) if it is more than the $19,000 annual exclusion per child in 2026, and it uses part of your $15,000,000 lifetime exemption.

You usually report gain only to the extent the price is more than your basis, and the child's basis is generally the higher of what they paid or your basis (Treas. Reg. 1.1015-4); your preparer confirms the allocation.

The cost: the child takes your low basis, so a later sale by the child has a large gain with no step-up, unlike land inherited at death. Holding the land until death, with a lease or a buy-sell agreement, often saves more tax.

A bargain right of first refusal may be ignored for estate valuation (IRC §2703).

Can I do a 1031 exchange on farmland, and into what?

Yes. Farmland is real estate held for business or investment, so you can sell it and buy other U.S. real estate without paying tax now, if you follow the rules (IRC §1031). You must name the replacement within 45 days and close within 180, never touch the money (a qualified intermediary holds it), and buy equal or greater value and debt to avoid tax on the difference.

What you can buy: other farmland, rentals, commercial property, a net-leased building, or an interest in a Delaware statutory trust. What does not count: equipment, livestock and, since 2018, personal property. A partnership interest cannot be exchanged. Cash you pocket is "boot" and is taxed. Your gain is not erased: the basis carries over, so you owe the tax later unless you hold until death.

The common farm problem is the deadline: finding good replacement land in 45 days in a hot market. If it fails, see a failed 1031 exchange and 1031 alternatives.

Which is better for a farm: a 1031 exchange, an installment sale, a Delaware statutory trust, or holding?

None is best for everyone. A 1031 exchange fits an owner who wants to stay in real estate. An installment sale fits an owner who wants cash income over years and a lower bracket. A Delaware statutory trust fits an owner who wants to exchange but not manage land. Holding fits an owner who does not need the money and expects to leave the land to heirs.

On the Iowa example, the cash sale costs $1,085,036 in tax in one year. A 10-year payout costs about $737,806 in total tax over the ten years, including tax on the interest. These numbers are not advice for you, because your basis, age and heirs change the answer. The side-by-side analysis puts your numbers in all of them. The first 15-minute scope call is free; the written analysis is $5,000.

Should I keep the farm until I die so my heirs get the step-up in basis?

If you do not need the money and your heirs will not owe estate tax, holding is often the lowest-tax answer. At death, the land's basis resets to its value at that date (IRC §1014), so the gain built up over your lifetime is never taxed.

Heirs can then sell at once with little or no gain. In 2026 the federal estate tax exemption is $15,000,000 per person, so most farm estates owe none.

In community property states (Texas, California, Wisconsin and a few others), both halves of community property step up at the first death (IRC §1014(b)(6)). Elsewhere only the dead spouse's half generally steps up.

Holding also has costs: you do not get the cash, the farm is one risk in one place, family disputes can follow, a few states have their own estate or inheritance tax, and the law can change. Land placed in an irrevocable trust outside your estate generally does not step up.

The better question is: do I need the money for my own life? If yes, the step-up does not help you, and a sale, an exchange or a payout may. See sell or keep.

Should I sell my farmland now or keep it?

Sell if you need the money for retirement, care or debt, if the land is most of your net worth, or if no heir wants to farm it. Keep it if you do not need the cash, the rent covers your costs, and an heir will take over or will inherit with a step-up. If you cannot decide, compare after-tax income from each path, not just price.

Land has done well for many owners, and also falls: values follow crop prices and interest rates, and a high price can reverse. The right decision depends on your age, your health, how the heirs feel, the debt on the land, and what a sale would net after tax.

Selling is not a bet on the market; it is a choice about concentration. The page's step-up section and cash rent comparison give the two sides.

Should I cash rent the farm or sell it?

Compare after-tax income, not rent against price. Cash rent is taxed as ordinary income each year, and the land stays at risk. A sale turns the land into money that can earn income, but costs tax up front. The cleanest comparison is: after-tax rent from keeping the land, against after-tax income from the net proceeds, with the tax paid up front or spread over a payout.

• Rent side: annual cash rent, less property tax, insurance and upkeep, taxed at your ordinary rate. Rent may also be investment income subject to the 3.8% tax if you do not materially participate; a share-rent arrangement with real participation can differ (IRC §1411 and §1402(a)(1)); ask your CPA which side you are on.
• Sale side: net sale proceeds after the tax in your situation, times the yield on what you buy, with that income also taxed.
• What the numbers decide: the owner's basis, the rent as a percent of value, the state, and the heirs' step-up.

Holding to leave the land to heirs can beat both, because the gain is wiped out at death. A rent-versus-sell comparison in your numbers is part of the written analysis. The first 15-minute scope call is free; the written analysis is $5,000. See also selling land and spreading the gain.

Can a conservation easement lower the tax when I sell or keep my farm?

A donated conservation easement can give a large charitable deduction and lower the land's value, but it does not exempt a sale. A qualified farmer or rancher can deduct up to 100% of adjusted gross income for a year, with a 15-year carryforward (IRC §170(b)(1)(E)).

To qualify as a farmer, more than half of your gross income for the year must come from farming. The deduction is the drop in the land's value from the easement, set by an appraisal.

The costs: the easement is permanent and runs with the land, the sale price drops because developers will not pay for rights you gave away, and the deduction helps only if you have income to use it. It may also reduce the estate value (IRC §2031(c)).

Certain syndicated easements are now disallowed. USDA's Agricultural Conservation Easement Program and state or local programs can instead pay you for an easement; that payment is a sale of part of your land rights, taxed against an allocated basis. Get a qualified appraisal and an attorney before any gift.

What happens to my CRP contract if I sell the land?

A Conservation Reserve Program contract is with the USDA Farm Service Agency, and it does not automatically move to the buyer.

Usually the buyer can take it over if the FSA county office approves; if neither of you continues the contract, you may have to refund the payments you received, with interest, and may owe damages unless an exception applies (7 CFR Part 1410). Call the county FSA office before you sign a contract.

The tax effects: CRP payments are generally rental income, and they can be subject to self-employment tax; there is a rule for owners who receive Social Security retirement or disability benefits, so confirm with your preparer.

Cost-share payments that you excluded from income can be recaptured as ordinary income if you sell within 20 years (IRC §1255). Tell the buyer's appraiser about the CRP, since enrolled land may sell for less than open cropland.

Can I give farmland to charity or a charitable trust to avoid the capital gains tax?

Yes, giving appreciated land to a qualified charity avoids the capital gains tax on it, and you may get an income tax deduction for its fair market value, generally up to 30% of adjusted gross income with a five-year carryforward for gifts to public charities (IRC §170(b)(1)(C)).

A qualified appraisal is required. A land trust or a university may accept farmland; many will not take land with debt, hazards or no buyer.

A charitable remainder trust is the middle path. You give the land to the trust, the trust sells it without tax at the sale, and it pays you or you and your spouse an income for life or a term.

You pay tax on the payments as you get them, and the remainder goes to charity (IRC §664). The charitable remainder must be at least 10% of the value.

The cost is that the heirs do not get the land or the principal, so many families pair it with life insurance for the children. This route needs a trust attorney.

What is special use valuation for a farm, and what is the rollback if heirs sell?

Special use valuation lets an estate value qualifying farm real property at its farm-use value, not at its highest and best use, which can reduce the estate by up to $1,460,000 in 2026 (IRC §2032A).

The cost is a recapture: if the heirs sell the land outside the family or stop farming it within 10 years of the death, the estate tax saving is clawed back, in whole or in part. The heirs' basis is the value used in the election, so a smaller step-up.

It has tests: the farm real property must be at least 25% of the adjusted estate and the farm assets 50%, and a family member must have materially participated in 5 of the 8 years before death. At a $15,000,000 federal exemption, most estates do not need the election; some state estate taxes do matter.

This is a federal estate tax rule and not the same as a county rollback on property tax. See the property tax rollback question.

Will I owe rollback or recapture tax if I sell farmland for non-farm use?

Possibly. Many states assess farmland at its farm-use value, not its market value, and charge back some of the tax savings when the use changes. The sale itself usually does not trigger it; a change of use does, such as a subdivision, a house or a commercial project. Who pays, you or the buyer, is set in the contract, so write it in.

Check the assessor's records before you list, and tell the buyer. A rollback can be large on land being converted, and it sometimes becomes a lien. For tax savings on the income tax side, see the state table.

Can I use the home sale exclusion on the farmhouse?

Yes, if you owned the farmhouse and lived in it as your main home for at least two of the last five years, you can exclude up to $250,000 of gain, or $500,000 if married and both spouses meet the use test (IRC §121).

The house site and the land around it that you used as part of your home can be included. The rest of the farm, the barns and the cropland, cannot.

Limits: depreciation taken on a home office or a rented part of the house after May 6, 1997 is not excluded, and a separate building or part of the land used only for the farm business is not part of the home and is allocated out.

A surviving spouse who sells within two years of the other spouse's death can still use the $500,000. How much land goes with the home is a facts question; keep a survey and photos. If you move to a care facility, the "1 of the last 5 years" rule in §121(d)(7) may help. See the divorce page for how two owners share the exclusion.

When is a payout on a farm sale a bad idea?

A payout is a bad idea when your gain is small, you need all the cash now, your life expectancy is short, or you want the heirs to inherit the farm with a step-up. In any of those cases, a cash sale, an exchange or holding is the better fit.

• Gain under about $500,000: the fixed payments and costs may not be worth it.
• You need most of the money now: payments are fixed and cannot be sped up. Pay debt at closing and spread only the rest.
• Short life expectancy: unpaid installment gain at death is income in respect of a decedent (IRC §691(a)(4)) and has no step-up. Holding the land would have wiped out the gain.
• Recapture and equipment: depreciation recapture is taxed in year one even with a payout.
• Not a farm-use property: the §453A exemption covers farming property; business or rental property over $5,000,000 outstanding at year end (IRC §453A(b)(2)) pays an interest charge.

For the rest, a payout can be a sound choice for a retiring farmer. It is one option, not the answer for every farm.

Who is selling: retiring owners, heirs, family and out-of-state owners

Short answers with links to the deeper pages.

Does this apply to farmland in Canada or the U.K.?

No. This page covers U.S. federal income tax and U.S. state rules. Canada, the U.K. and other countries tax farm sales and inheritances differently: Canada has a lifetime capital gains exemption for qualified farm property and a deemed-disposition rule at death; the U.K. has agricultural property relief and its own inheritance tax rules.

If you are a U.S. citizen or resident who owns farmland abroad, or a foreign owner of U.S. land, the rules are different again, and you need a preparer who handles cross-border returns.

I am a retiring farmer selling land. What are my options and what will I owe?

A retiring farmer selling land owes capital gain tax on the sale, plus recapture on equipment and buildings, plus state tax, and has five realistic choices: sell for cash, exchange into other real estate, take a payout over years (the buyer pays in full at closing and you are not the bank), lease the land and keep it for the step-up, or sell to a family member or a tenant.

Which one wins depends on how much income you need, your basis, your heirs and your state.

If you no longer materially participate in the farm, the gain may not be exempt from the 3.8% tax, so the sale can cost about $146,908 more than the same sale by an active owner in our Iowa example ($1,085,036 versus $938,128). The full retirement plan (income, Social Security, health costs, buying out siblings) is on selling the farm when you retire.

Do farmers pay estate tax or inheritance tax on the family farm?

Most U.S. farm families owe no federal estate tax. In 2026 the federal exemption is $15,000,000 per person, so a married couple can pass $30,000,000 with planning, and special use valuation can reduce the value of qualifying farm real property by up to $1,460,000 (IRC §2032A).

A few states add their own tax. Illinois has an estate tax that starts at $4,000,000; Minnesota's starts at $3,000,000, with an exclusion for qualified farm property; Nebraska has a county inheritance tax with rates set by the heir's relationship (spouses are exempt).

Iowa's inheritance tax is reported to have ended for deaths on or after January 1, 2025.

Most other farm states (Kansas, Indiana, North Dakota, South Dakota, Texas, Oklahoma, Missouri, Wisconsin, Ohio, California) have neither tax. This page covers U.S. rules. The U.K. inheritance tax changes that make news for farms there are a different law. See the state table and confirm with a local estate attorney as of October 2026.

Inherited farm sale taxes: what do heirs owe when they sell?

Heirs who sell inherited farmland usually owe little or no federal income tax, because the basis resets to the land's value on the date of death (IRC §1014); only growth after that date is taxed. The things that still cost money are state inheritance or estate tax (a few states), a missing date-of-death appraisal, selling costs, and how the siblings split the money.

The step-up applies to land in the decedent's estate, not to land given before death. Equipment gets a fresh basis too.

If the owner is still alive and will not sell, no one can force a sale; after death or incapacity, the deed, will, trust and power of attorney decide, and a co-owner can sometimes ask a court to order a sale (partition) in the state where the farm sits.

For disputes between siblings, partition, buyouts and one heir who wants to stay, see selling inherited farmland between siblings. If a parent is still alive, the step-up section shows why waiting can save the tax.

How is farmland valued, and how do I know what my farm is worth?

Farmland is valued three ways: recent sales of similar farms nearby (comparable sales), the income the land can produce (cash rent capitalized), and its soil productivity and features. An appraiser who works on rural land in your county, such as an accredited rural appraiser, weighs all three.

A broker's opinion or an auction can set a market price; a county assessment generally does not, because many counties assess farmland at use value.

What moves the price per acre: soil quality ratings, drainage and tile, water or irrigation rights, road access, parcel size and shape, buildings, minerals, CRP enrollment, and development potential. For published averages, look at your state's university land value survey and USDA reports (not a number from a listing site).

You need a qualified appraisal anyway for a date-of-death basis, an easement or a gift. The value number goes into the tax estimate, and the tax decides what is left.

What are the steps to sell a farm, and what should I do before I list it?

Do the tax plan before the listing agreement. A structured payout (the buyer pays in full at closing and you are not the bank) or an exchange must be built before closing, and some choices end once a contract is signed.

The usual order: confirm who owns the land and who must sign; rebuild your basis; get an appraisal; check the lease, CRP, minerals, easements and rollback; compare cash, exchange, payout and hold; then pick a broker or auction.

1. List the owners, trusts and spouses who must sign, and any liens or leases.
2. Rebuild basis and depreciation (past returns, Form 4562, closing papers, estate inventory).
3. Get a rural appraisal, and a forester or mineral valuation if they matter.
4. Check lease end dates, CRP, mineral and water rights, easements and ag assessment.
5. Run a side-by-side tax comparison. The first 15-minute scope call is free; the written analysis is $5,000.
6. Choose a broker, auction or direct buyer; put the chosen structure in the contract.
7. Close, report the sale on the right forms, and plan estimated taxes.

Ask your CPA and a real estate attorney to review; I can build the comparison. For the full farm page, read from the top.

What state taxes apply when I sell farmland in Iowa, Nebraska, Kansas, Illinois, Texas or another state?

State tax on a farm sale ranges from none (Texas, South Dakota) to 13.3% (California) in 2026, and a few states may subtract some or all of the gain. Missouri subtracts 100% of capital gain from tax year 2025.

Iowa taxes the gain at 3.8%, with a reported exclusion for certain retired or disabled farmers (confirm on the return). Nebraska's top rate is 4.55%, Kansas 5.58%, Illinois 4.95%, Minnesota 9.85%. The table below covers 14 farm states, with the statute where we verified it and plain wording where we did not.

On the Iowa example, which assumes no state exclusion applies, the state tax is $154,128; the same sale in Nebraska is $184,548, which makes the whole one-year bill $1,115,456 rather than $1,085,036. Jump to Iowa, Nebraska, Kansas, Illinois, Texas or the full table.

If you live in another state, the farm's state still taxes the gain on its land, usually through a nonresident return, and your home state gives a credit. Some states also withhold part of the price at closing from a nonresident seller; California withholds 3 1/3% of the sales price unless you file for a reduced amount (R&TC 18662, Form 593). Ask the closing agent before closing.

Is there an Iowa exclusion for a retired farmer who sells land?

Yes, in part. The Iowa Department of Revenue says Iowa keeps an exclusion for certain capital gains of retired farmers age 55 or older, or disabled farmers, with conditions that you must meet on the Iowa return.

The earlier, broader Iowa deduction for capital gain on real property used in a farming business is reported to have ended for tax years starting in 2023, so older articles may be out of date.

This page does not quote the statute, so confirm the exact age, holding-period and participation conditions on the Iowa return instructions or with a preparer before you rely on it as of October 2026.

Iowa's flat rate is 3.8% in 2026 (Tax Foundation; the Iowa Department of Revenue page also discusses 3.9%, so confirm on the Iowa 1040 instructions). Iowa's inheritance tax is reported to have ended for deaths on or after January 1, 2025.

Federal tax is not changed by any of this. See the Iowa row in the state table and the 320-acre Iowa example higher on this page, which assumes no state exclusion.

Getting your numbers

How do I compare selling now, a 1031 exchange, a payout and holding in my numbers?

Ask for a side-by-side comparison on your own figures: basis, depreciation, age, state, income, debt and heirs. Hans Goldstein, EA, an enrolled agent admitted to practice before the IRS, runs one. The first 15-minute scope call is free; the written analysis is $5,000. The first call checks the facts, whether a payout fits, and what documents are needed.

What to bring: your last three returns and depreciation schedules (Form 4562 and the farm schedule), the closing papers or date-of-death appraisal, the lease, any loan balance, and an appraisal or offer if you have one.

We compare a cash sale, a 1031 exchange, a payout of 10 or 15 years (the buyer pays in full at closing and you are not the bank), a lease and hold, and, if it applies, a gift or easement.

See the structured sale calculator for a rough first look, and who writes this.

This is education, not tax or legal advice. Your CPA and attorney still decide and sign. A preparer should check any state rule before you rely on it.

Farm sale tax by state (2026)

Top rates are the 2026 state rates (Tax Foundation). Farm-specific relief is shown only where we verified it; for the rest we say what kind of rule exists and ask you to confirm it on the state return. Rollback and recapture rules apply to property tax or estate tax, not income tax. Not tax advice; confirm with a preparer as of October 2026.

Iowa

Iowa's top rate is 3.8% in 2026 (Tax Foundation). The Iowa Department of Revenue says Iowa keeps an exclusion for certain capital gains of retired farmers age 55 or older or disabled; the general deduction for farm real property is reported to have ended for 2023 and later.

Confirm the conditions on the Iowa return. Iowa's inheritance tax is reported to have ended for deaths in 2025 and later. In our Iowa example the state tax is $154,128. See the Iowa retired-farmer question.

Nebraska

Top rate 4.55% in 2026. We did not verify a farmland-sale gain exclusion, so assume ordinary state tax and ask the Nebraska Department of Revenue. Nebraska has a county inheritance tax with rates set by the heir's relationship to the owner. On our example the state tax is $184,548 and the one-year total is $1,115,456.

Kansas

Top rate 5.58% in 2026. No farm-specific gain exclusion verified. Kansas has no state estate or inheritance tax.

Illinois

Flat 4.95%, no preference for long-term gain. Farmland assessed under the Farmland Assessment Act can owe a roll-back for the year of change and the two years before, with interest, when use changes (35 ILCS 200/10-140). Illinois has a state estate tax that starts at $4,000,000, so a large farm can owe state tax even under the federal exemption.

Indiana

2.95% flat in 2026, plus the county income tax where you live. No farm-specific gain exclusion verified. No state estate or inheritance tax.

Minnesota

Top rate 9.85%, plus a 1% net investment income tax on investment income over $1 million, so a large gain can reach about 10.85%. Minnesota has an estate tax that starts at $3,000,000, with an exclusion for qualified farm property. Land in the Green Acres program can owe back property tax when it leaves the program; confirm the years with the county.

North Dakota

Top rate 2.5% in 2026. North Dakota may allow some relief on long-term capital gain or farm assets; whether it applies to your sale, and how much in 2026, must be confirmed on the state return. No state estate or inheritance tax.

South Dakota

No individual income tax, so no state tax on the gain. No state estate or inheritance tax. South Dakota is not a community property state, though it allows opt-in community property trusts.

Texas

No individual income tax. The property-tax side matters: land appraised for agricultural use can owe a rollback tax if its use changes, generally the previous three years plus interest (Tex. Tax Code 23.55). Texas is a community property state, so both halves of community property step up at the first spouse's death (IRC §1014(b)(6)). No state estate or inheritance tax.

Oklahoma

Top rate 4.5% in 2026. Oklahoma may allow some relief on long-term capital gain or farm assets; whether it applies to your sale, and how much in 2026, must be confirmed on the state return. No state estate or inheritance tax. Oklahoma may require withholding on a nonresident's real property sale, so ask the closing agent.

Missouri

Top rate 4.7% in 2026. Missouri subtracts 100% of net capital gain from tax year 2025 (RSMo 143.121.3(14)(a), verified from the statute), which covers a qualifying farmland sale. Read the statute for conditions and confirm on your Missouri return. No state estate or inheritance tax.

Wisconsin

Top rate 7.65% in 2026. Wisconsin may allow some relief on long-term capital gain or farm assets; whether it applies to your sale, and how much in 2026, must be confirmed on the state return. Wisconsin's marital property law works like community property for the step-up, so both halves step up at the first death. Use-value assessed land can owe a conversion charge when the use changes.

Ohio

2.75% in 2026 on income above the first $26,050. Ohio may allow some relief on long-term capital gain or farm assets (Ohio's business income rules may matter if the farm is run as a business); whether it applies to your sale, and how much in 2026, must be confirmed on the state return.

Land taxed under the Current Agricultural Use Value (CAUV) program owes a recoupment of prior-year savings, generally the previous three years, when use changes (R.C. 5713.34). No state estate tax.

California

California taxes capital gain as ordinary income, with a 13.3% top rate in 2026 (12.3% plus 1% over $1 million). We did not verify any farm gain exclusion. A Williamson Act contract runs with the land and a cancellation fee applies if cancelled (Gov.

Code 51283). California is a community property state, so both halves step up at the first death. A nonresident seller has 3 1/3% of the price withheld unless a reduced amount is filed. See California farmland capital gains.

Community property step-up: Texas, California and Wisconsin (marital property) give both halves of the property a new basis at the first spouse's death. Washington's 7% capital gains tax does not apply to real estate. Other states: top rates are Florida none, Nevada none, New York 10.9%, New Jersey 10.75%, Oregon 9.9%, Pennsylvania 3.07%, Virginia 5.75%, Arizona 2.5%; confirm on your return.

When this does not fit

• You need most of the money now. Payments are fixed. A large debt payoff or a purchase is better done with cash at closing, with only the rest spread.
• Life expectancy is short and the estate is under the exemption. The $15,000,000 per person exemption in 2026 means most farm estates owe no federal estate tax, and holding gets the step-up. A sale may give up a gain that would have vanished.
• The gain is small. Under about $500,000 of gain, the costs and fixed payments may not be worth it.
• You want to keep farming or stay in the family. Then lease, sell to the next generation, or use a conservation easement. Selling outright is the wrong tool.
• The buyer will not cooperate. A structure costs the buyer nothing, but it has to be in the contract.
• Most of the gain is equipment recapture or buildings. That part is taxed in year one either way.

What you can do this week

1. Find your basis: the purchase price or the estate value at death, plus improvements. Do not guess.
2. Split the sale into land, buildings, house and equipment. Each is taxed differently.
3. Ask your CPA two questions: do I materially participate, and does the farm exemption apply to my land?
4. Before you sign a listing or a letter of intent, run the real numbers. This is the step farm families skip. It takes one 15-minute call.

Matching tools: the structured sale calculator and the seller net sheet after tax. More on farm and ranch sales: Can a structured installment sale work for a farm or ranch?, California farmland, selling land and spreading the gain, and on Big Sale Tax, farmland capital gains and farm installment sales.

Frequently asked questions

How much tax will I pay on selling the family farm?

Take the sale price, subtract selling costs and your basis. The rest is taxed mostly as long-term capital gain (0%, 15% or 20% federal, plus state), and the 3.8% net investment income tax may apply. In our Iowa example, a $4.8 million sale with a $600,000 basis owes about $1,085,036 if it all lands in one year.

What is the capital gains tax on selling a farm?

Land held more than a year is taxed at 0%, 15% or 20% federal, and a large sale puts most of it at 20%. Depreciated buildings are taxed up to 25%, and equipment gain is ordinary income. State tax is extra (Iowa 3.8% and Nebraska 4.55% in 2026).

Is there capital gains tax on the sale of farmland, and how do I avoid it?

Yes, unless the gain is small or you hold the land until death, when the basis resets (IRC §1014). The ways to pay less or later are a 1031 exchange, an installment sale with a payout over years, a donated conservation easement, or giving to charity. Each has trade-offs, shown in the options table above.

I am a retiring farmer. How can I sell land and still have income?

Write a payout into the sale before closing. The buyer pays cash at closing and the payments to you come from an annuity the buyer funds, for 5, 10 or more years. You can also lease the land. A payout gives a fixed paycheck and spreads the tax.

Does the farm exemption from the 453A interest charge really apply?

Yes, IRC §453A(b)(3) excludes property used or produced in the trade or business of farming, which uses the farm definition in §2032A. Farmland you rent out or no longer farm may not qualify, so your CPA should confirm.

Can I use a 1031 exchange on farmland?

Yes. Farmland can be exchanged for other farmland, rental property or commercial real estate. You must identify the replacement within 45 days and close within 180. If it falls through, the gain is taxable, so many sellers set up a backup before closing.

How do I sell the farm to my children and keep the tax down?

Sell near fair market value with a written appraisal. A note from the children spreads your tax, but if they resell within 2 years the related-party rule (IRC §453(e)) can accelerate it. A large discount is a gift. Have your CPA and attorney write it up.

The heirs want to sell the family farm. What should we do first?

Find the basis. If the owner has died, the basis is usually the value at death, so the gain may be small. If the owner is alive, selling now may cost much more tax than waiting. Get an appraisal at the date of death and a CPA before you list.

Should I sell my farmland now or keep it?

Keep it if you do not need the money and the heirs can wait, because the step-up can erase the gain. Sell if you need retirement income, the land is concentrated risk, or the heirs will not farm. Compare both before you decide.

What happens to the payments if I die?

The remaining payments go to the named beneficiary. The unpaid gain is income in respect of a decedent (IRC §691(a)(4)), so the heirs pay income tax as payments arrive, with no step-up on that part.

What does a real analysis cost?

The first 15-minute scope call is free. A written analysis is $5,000. The calculators and this page are free.

What is the Section 1062 election for selling farmland?

It lets you pay the tax caused by a sale of qualified farmland property to a qualified farmer in 4 equal yearly installments (IRC §1062, added July 4, 2025, for sales in tax years beginning after that date). The land must have been farmed or leased to a farmer for substantially all of the prior 10 years and be restricted to farm use for 10 years after the sale.

Who is a qualified farmer for Section 1062?

An individual actively engaged in farming under the Food Security Act payment-limit rules (7 U.S.C. 1308-1(b) and (c)). A corporation, investor or developer is not.

Can I use Section 1062 and an installment sale together?

The statute spreads the tax on gain recognized in the sale year. I found no IRS guidance on combining it with an installment sale as of October 15, 2026, so ask your preparer before relying on both.

What are the taxes when I sell farmland to a neighbor?

The same as any farmland sale: long-term capital gain at 0%, 15% or 20% federal plus state tax, depreciation recapture on buildings and equipment, and possibly the 3.8% net investment income tax. A sale to a working farmer can also qualify for the Section 1062 four-year payment election.

Retiring farmer selling land: how is it taxed?

Farmland is taxed mostly as long-term capital gain on the sale price minus selling costs minus basis. Recapture is ordinary income. A payout over years or the Section 1062 election to a farmer buyer can spread the tax, and holding until death resets the basis for heirs.

Does the 453A interest charge apply to farm land sold on installments?

No. Property used or produced in the trade or business of farming is exempt from the 453A interest charge on large installment obligations (IRC §453A(b)(3)). Recapture is still taxed in year one.

Sources and dates

• IRC §453A(b)(3), farming and personal-use exceptions to the interest charge, checked October 14, 2026
• IRC §1411(c), net investment income and trade or business property, checked October 14, 2026
• IRC §453(e), second dispositions by related persons, checked October 14, 2026
• IRC §170(b)(1)(E), conservation contribution limits for farmers and ranchers, checked October 14, 2026
• IRC §2031(c), conservation easement estate exclusion, checked October 14, 2026
• IRS, Estate tax filing threshold ($15,000,000 for 2026), checked October 14, 2026
• IRS Publication 225, Farmer's Tax Guide, checked October 14, 2026
• IRS Rev. Proc. 2025-32, 2026 tax figures, checked October 14, 2026

Who wrote this?