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Capital Gains Tax

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.

Lots to think about. Let’s talk it through.
It can be hard to sort through your land protection options and tax benefits on a website. We’re here to help you through it. We can visit by phone, in person or on the land. Free. Confidential. No sales pitch. No obligation. Just the information and introductions you need to get started. Contact us.

Iowa Natural Heritage Foundation does not provide professional tax or legal advice. We encourage you to hire professional advice as needed to assist your transaction and your deduction.