A bill to amend the Internal Revenue Code of 1954 to permit the rollover of gain from the sale of farmland development rights to a State under a farmland preservation program, and for other purposes.

Summary

Amends the Internal Revenue Code to allow nonrecognition of gain for the sale of farmland development rights to a State under a qualified farmland preservation program if, within 18 months before or after such sale, new farmland property is purchased and used by the taxpayer for farming purposes. Requires recognition of gain to the extent that the amount realized on the sale of such rights exceeds the cost of purchasing such new farmland. Defines "farmland development rights" as the right of a real property owner to devote property to a use other than for farming purposes. Defines "qualified farmland preservation program" as a program established by State law for the purpose of assuring that property currently devoted to farming will continue to be so devoted, and which provides for the purchase of farmland development rights by the State in order to carry out that purpose. Requires recapture of unrecognized gain if, within five years of the sale of farmland development rights, the taxpayer: (1) devotes the property concerned to a use other than for farming purposes; (2) sells or exchanges such property for such a non-farming use; or (3) uses the new farmland for other than farming purposes. Allows a taxpayer who has attained age 55 to elect to exclude from gross income any gain from the sale of farmland development rights to a State under a qualified farmland preservation program, if the property concerned has been owned and used by the taxpayer for farming purposes for periods aggregating at least three years during the five years prior to such sale. Limits the amount of such exclusion to $100,000 ($50,000 for a married individual filing a separate return). Limits application of such exclusion to one sale only. Treats any taxpayer who has made such a sale, where the gain falls short of fair market value, as having made a deductible charitable contribution of the difference.

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1 official file

• Introduced in Senate

  summary · EN · 21 August 1980

  Open at official source

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