Senators Chuck Grassley of Iowa along with Al Franken of Minnesota have introduced legislation to make capital gains from Chapter 12 farm sales not subject to capital gains taxes. Grassley says their measure would reverse an earlier Supreme Court Ruling that said the sale of a taxpayer’s farm is taxable.
Grassley says the Chapter 12 reorganization has been a successful program that has helped many farmers and ranchers.
Grassley says today 75 percent of land is paid for. He says if one gets land rich and income poor the capital gains tax would be catastrophic for farmers who have to pay it.