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HR8591119th CongressWALLET

No Capital Gains Tax on Family Farms Act

Sponsored By: Representative Massie, Thomas [R-KY-4]

Introduced

Summary

Excludes capital gains on qualifying farm transfers to family members. This bill would create a new Section 121A to let sellers exclude all or part of the gain when they sell or exchange qualified farm property to a qualified family member, subject to definitions, basis rules, holding-period tests, and elections.

Show full summary
  • Farmers and families: Farm owners could transfer land and other qualified farm property to spouses, parents, children, adopted relatives, or their spouses without recognizing capital gains at the time of sale, making it easier to keep farms in the family.
  • Recipients and basis rules: Recipients generally take the seller's basis instead of a stepped-up basis. If the family member retains the property for 10 years without certain dispositions, the bill triggers a one-time upward basis adjustment to reflect the sale date fair market value.
  • Eligibility and administration: Property must have been owned and used for farming for at least 2 years within an 8-year lookback. The bill includes an election to opt out and gives the Treasury Secretary authority to issue implementing regulations.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

No Capital Gains Tax for Family Farms

If enacted, this bill would let you exclude from gross income any gain when you sell or exchange U.S. farm real property to a qualifying family member. The land or farm interest must have been owned and used as a farm for at least 2 years during the 8 years before the sale. A qualifying family member includes your spouse; your or your spouse's children and descendants (including adopted children); your or your spouse's parents; and the spouse of those descendants. The recipient generally takes your adjusted tax basis (carryover basis). If the recipient does not sell, exchange, or otherwise dispose of the property for 10 years after the transfer, their basis is increased on the day after that 10-year period by any excess of the sale-date fair market value over the carryover basis. You would be able to elect out under rules like section 121(f). The Secretary would be able to issue rules about partial interests and other details. The change would apply to sales or exchanges after the date of enactment.

Sponsors & CoSponsors

Sponsor

Massie, Thomas [R-KY-4]

KY • R

Cosponsors

  • Rep. Perez, Marie Gluesenkamp [D-WA-3]

    WA • D

    Sponsored 4/30/2026

  • Rep. Roy, Chip [R-TX-21]

    TX • R

    Sponsored 4/30/2026

  • Rep. Davidson, Warren [R-OH-8]

    OH • R

    Sponsored 4/30/2026

  • Rep. Burchett, Tim [R-TN-2]

    TN • R

    Sponsored 4/30/2026

  • Rep. Boebert, Lauren [R-CO-4]

    CO • R

    Sponsored 4/30/2026

  • Rep. Mace, Nancy [R-SC-1]

    SC • R

    Sponsored 4/30/2026

  • Rep. Edwards, Chuck [R-NC-11]

    NC • R

    Sponsored 4/30/2026

  • Rep. Burlison, Eric [R-MO-7]

    MO • R

    Sponsored 4/30/2026

  • Rep. Collins, Mike [R-GA-10]

    GA • R

    Sponsored 4/30/2026

  • Rep. Fedorchak, Julie [R-ND-At Large]

    ND • R

    Sponsored 4/30/2026

  • Rep. Perry, Scott [R-PA-10]

    PA • R

    Sponsored 5/12/2026

Roll Call Votes

No roll call votes available for this bill.

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