Iowa Capital Gain Deduction - Flowchart

Do You Have A Qualifying Iowa Capital Gain Deduction?

If line 6 of the IA 1040 includes a capital gain transaction, click on the applicable type of sale. Should the Department request it, the information on the Capital Gain Deduction Checklist will be needed to verify whether you qualify for the deduction. Other information, in addition to that shown on the checklist, may also be required in some situations.

IAC – Iowa Administrative Code       IRC – Internal Revenue Code        IRS – Internal Revenue Service

Miscellaneous
Transactions

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

Sales of Business Assets
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IRC section 331
IRC section 338
IRC section 469(h)
IRC section 1223
IRS Reg. 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
Non-Farm Business

(pdf)
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IRC section 469(h)
IRC section 1223
IRS Reg. I.469-5 and 5T
IAC 40.38(1)
IAC 40.38(7)

Timber
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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)

Real Property Used in a Farming Business
(pdf)
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IRC section 469(h)
IRC section 1223
IRC Section 2032A
IRS Reg. I.469-5 and 5T
IAC 40.38(1)
IAC 40.38(7)