What does Preamble of No Capital Gains Tax on Family Farms Act do?

This bill amends the Internal Revenue Code of 1986 It provides an exclusion from gross income for gain from sale of qualified farm property to qualified family members

What does SHORT TITLE. of No Capital Gains Tax on Family Farms Act do?

This bill is formally titled the "No Capital Gains Tax on Family Farms Act".

What does EXCLUSION FROM GROSS INCOME OF GAIN FROM SALE OF QUALIFIED FARM of No Capital Gains Tax on Family Farms Act do?

This section amends the Internal Revenue Code of 1986 to introduce a new section, 121A, regarding the exclusion of gain from the sale of qualified farm property. The exclusion applies to sales to qualified family members, which includes a taxpayer's spouse, lineal descendants, or the spouse of a lineal descendant. Qualified farm property is defined as real property in the United States owned and used as a farm for farming purposes for at least two years within an eight-year period. The basis of qualified farm property in the hands of a qualified family member following the sale is generally the taxpayer's adjusted basis immediately before the sale. If the property is held for ten years after the sale, the qualified family member's basis may be increased to reflect the fair market value at the time of the sale. The Secretary is authorized to issue regulations to carry out the purposes of this section.

Back to bills

No Capital Gains Tax on Family Farms Act

Last updated: 4/30/2026 · Introduced: 4/30/2026

Author: Thomas Massie (R-KY)

TL;DR (AI)

This bill excludes gains from the sale of qualified farm property to qualified family members from federal gross income.
Qualified farm property is defined as U.S. real property used for farming purposes for at least two years within an eight-year period.
Family members acquiring qualified farm property through this sale may have their basis adjusted, potentially increasing it to the fair market value if the property is held for ten years.

119th Congressin committeeOfficial page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account