When you sell property, you will likely incur capital gains taxes based on the difference between your sale price and your basis (your original purchase price plus improvements and less depreciation).
If your land has greatly appreciated during your ownership, you may owe significant federal and state capital gains taxes when you sell it. See Tax Case Study.
Iowa does not tax capital gains resulting from the sale of property used in trade or business for at least 10 years.
When a landowner dies, the basis is automatically reset to the current fair market value at the time of death.
A Like-Kind Exchange with a conservation agency might help you protect land while deferring capital gains taxes.