No Capital Gains Tax on Family Farms Act

This bill would change federal tax law so that a person who sells or exchanges farmland to a close family member would not pay income tax on the gain from that sale. To qualify, the seller must have owned and used the land as a farm for at least 2 of the 8 years before the sale. Family members include a spouse, children and other descendants of the seller, the seller's spouse, or their parents, and the spouses of those descendants; adopted children count. The buyer would take over the seller's tax basis in the land, but if the buyer keeps the land for 10 years, that basis would be raised to the land's fair market value at the time of the sale. The change would apply to sales made after the bill becomes law.

Full text and official record on Congress.gov

Sponsors

• Thomas Massie Republican sponsor
• 11 cosponsors