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Capital Gains Installment Payment Election for Qualified Farmland Sales (IRC Section 1062 / Section 70437)
Illinois — state programSee program
For tax years beginning after July 4, 2025, taxpayers may elect to pay the 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 both individuals and business entities; for partnerships or S corporations, the election is made at the partner or shareholder level.
Program details
- Type
- tax-credit
- Eligibility
- Taxpayers (individuals and business entities) selling qualified farmland property — real property located in the United States used as a farm for farming purposes or leased to a qualified farmer during substantially all of the 10-year period ending on the sale date, subject to a covenant prohibiting non-farm use for 10 years after sale. Purchaser must be a qualified farmer actively engaged in farming (within the meaning of 7 U.S.C. §§ 1308-1(b) and (c)).
- Status
- open
- Administrator
- IRS
Source: Illinois — state program. Confirm current terms with the administering agency before applying.