Iowa Capital Gain Deduction - Flowchart

Do You Have A Qualifying Iowa Capital Gain Deduction Under Iowa Administrative Code (IAC) 701-40.38 Internal Revenue Code (IRC)

If line 6 of the IA 1040 includes a capital gain transaction, click on the applicable type of sale.

Miscellaneous
Transactions (pdf)

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IAC 40.38(1)
IAC 40.38(5)
IAC 40.38(6)
IAC 40.38(7)
IAC 40.38(8)
IAC 40.38(13)
IAC 40.38(14)

Breeding Stock Other Than Cattle and Horses (pdf)

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IRC section 1231
IAC 40.38(3)
IAC 40.38(10)

Cattle and Horses Used For Breeding Draft, Dairy or Sporting Purposes (pdf)

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IRC section 1231
IAC 40.38(2)
IAC 40.38(9)

Sales of Business Assets (pdf)

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IRC section 331
IRC section 338
IRC section 469(h) and Treasury Rules I.469-5 and 5T
IAC 40.38(1)
IAC 40.38(8)
IAC 40.38(12)
IAC 40.38(13)
IAC 54.2 (1)

Real Property Used in a Business (pdf)

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IRC section 469(h)
IAC 40.38(1)
IAC 40.38(7)

Timber (pdf)

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IRC section 1231
IRC section 1.631-1
IRC section 1.631-2
IAC 40.38(4)
IAC 40.38(11)