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Capital Gains Installment Election for Farmland Sales (Section 70437 / IRC §1062)
Illinois — state programSee program
For tax years beginning after July 4, 2025, taxpayers may elect to pay net income tax attributable to gains from the sale or exchange of qualified farmland property to a qualified farmer in four equal annual installments. Available to individuals and business entities; for partnerships or S corporations, the election is made at the partner or shareholder level.
Program details
- Type
- other
- Eligibility
- Taxpayers (individuals and business entities) selling or exchanging qualified farmland property to a qualified farmer. Qualified farmland must be U.S. real property used as a farm or leased to a qualified farmer for substantially all of the 10-year period ending on the sale date, and subject to a 10-year farming-use covenant post-sale.
- Status
- open
- Administrator
- IRS
Source: Illinois — state program. Confirm current terms with the administering agency before applying.