A bill to amend the Internal Revenue Code of 1986 to provide an exclusion for gain from the sale of farmland which is similar to the exclusion from gain on the sale of a principal residence.
The source supplies the latest action, but no lifecycle stage.
Latest action (30 Jul 1998): Read twice and referred to the Committee on Finance.
What this bill does
This bill, S. 2388, proposes to amend the Internal Revenue Code to create an exclusion for some of the profit made from selling farmland. Similar to an exclusion already available for the sale of a primary home, this would allow individuals to exclude up to $500,000 in gain ($250,000 for married individuals filing separately) from their taxable income. To qualify, the property must have been used as a farm for farming purposes by the taxpayer or a family member for at least three years out of the five years preceding the sale, and the taxpayer must have materially participated in the farm's operation.
The bill is sponsored by Senator Byron Dorgan and was introduced in the Senate on July 30, 1998. It was referred to the Committee on Finance. As it has only been introduced, it has not yet been voted on by the full Senate or the House of Representatives. If it were to advance, it would require passage by both chambers of Congress and the President's signature to become law. The proposed exclusion would apply to sales occurring on or after May 7, 1997.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Amends the Internal Revenue Code to provide for a limited exclusion from gross income of gain from the sale or exchange of qualified farm property.
Timeline
30 Jul 1998
Read twice and referred to the Committee on Finance.
Common questions
- What does S. 2388 do?
- This bill, S. 2388, proposes to amend the Internal Revenue Code to create an exclusion for some of the profit made from selling farmland. Similar to an exclusion already available for the sale of a primary home, this would allow individuals to exclude up to $500,000 in gain ($250,000 for married individuals filing separately) from their taxable income. To qualify, the property must have been used as a farm for farming purposes by the taxpayer or a family member for at least three years out of the five years preceding the sale, and the taxpayer must have materially participated in the farm's operation. The bill is sponsored by Senator Byron Dorgan and was introduced in the Senate on July 30, 1998. It was referred to the Committee on Finance. As it has only been introduced, it has not yet been voted on by the full Senate or the House of Representatives. If it were to advance, it would require passage by both chambers of Congress and the President's signature to become law. The proposed exclusion would apply to sales occurring on or after May 7, 1997.
- Has S. 2388 become law?
- The source does not supply a confirmed lifecycle stage for S. 2388. Check the latest action and official source below.
- Who sponsored S. 2388?
- S. 2388 was sponsored by Sen. Dorgan, Byron L. [D-ND] (D-ND), with 0 cosponsors.
- What's the latest action on S. 2388?
- Read twice and referred to the Committee on Finance. (30 Jul 1998).
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