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Capital Gains Installment Payment for Sale of Qualified Farmland Property (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 capital gains from the sale or exchange of qualified farmland property to a qualified farmer in four equal annual installments. The first installment is due on the return's due date (without extension) for the year of the sale. Available to 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 U.S. used as a farm for farming purposes or leased to a qualified farmer during substantially all of the 10-year period ending on the date of sale, 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.