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2024 Iowa tax law change Retroactive to 01/01/2023

Level 8

@taxiowa  @Flinders @Royal  

HF2649 has passed the Iowa House in March 2024, and passed the Iowa Senate on April 19th, 2024, and Iowa Gov Kim likely to sign into law.  April 30th Iowa filing deadline is next Tuesday. Nice...

House File 2649
HOUSE FILE 2649 BY COMMITTEE ON WAYS AND MEANS (SUCCESSORTOH SB680) (As Amended and Passed by the House March 19, 2024)
A BILL FOR An Act excluding the net capital gain from the sale of certain
livestock from the computation of net income for purposes
of the individual income tax, and including retroactive
applicability provisions.
the following new subsection:
NEW SUBSECTION. 44.a. For purposes of this subsection,
“held” shall be determined with reference to the holding period
provisions of section 1223 of the Internal Revenue Code and the 
federal regulations pursuant there to.
b. Subtract the net capital gain from the following:
7(1) The sale of cattle or horses held by the tax payer for
breeding, draft, dairy, or sporting purposes for a period 
of twenty-four months or more from the date of acquisition,
10 but only if the tax payer received more than one-half of the 
11 taxpayer’s gross income from farming or ranching operations
12 during the tax year.
13(2)The sale of breeding livestock, other than cattle or
14 horses, held by the taxpayer for a period of twelve months or
15 more from the date of acquisition, but only if the taxpayer
16 received more than one-half of the taxpayer’s gross income from
17 farming or ranching operations during the tax year
18c. A retired farmer as defined in subsection13 is not
19 eligible for the exclusion in this subsection if taking the
20 exclusion allowed in subsection 13, paragraph “c” or “d”, in the
21 same tax year.
22 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
23 retroactively to January 1, 2023, for tax years beginning on
24 or after that date
5 Comments 5
Level 15

Luckily, Minnesota never does anything that stupid.  They usually pass those retroactive things around the end of March or the first week of April to give tax preparers plenty of time to handle the changes.  It looks like Iowa is trying to one up Minnesota on those retroactive changes.

Slava Ukraini!
Level 15

It's not how close to the filing date of April 30 that matters.  It's how close they are to November 5, when they need all the money they can get from these race horse breeders and other salt-of-the-earth types that inhabit Iowa.   

Level 9
Level 9

Yes this just proves we do have idiots (mostly Republicans) in the statehouse.  Do ya think they are doing farmers who had to file by March 1st a favor, by passing a law helping them on April 23rd.  Because thy will be charged handsomely for their $150 to $600 amended return refund.  No farmers, (who are the only ones to qualify), have not filed by now.

Level 15

As if you have nothing better to do than amending returns for retroactive law changes.   Ugh!!

Level 8

@IntuitGabi  can you forward this on to the ProSeries IA1040 module programmer.  I have been indirectly told that The Iowa Dept of Revenue would be making a post regarding this on their website in the coming days.  Please post what you learn on this thread,