hold on there's just too much going on in Congress lmao...
Excludes capital gains tax on farm sales to family.
Rep. Massie (R, KY) and 10 co-sponsors.
Introduced in the House, awaiting committee review.
This bill proposes to change the tax code to remove the capital gains tax when a 'qualified farm property' is sold to a 'qualified family member.' It was introduced by Representative Thomas Massie, a Republican from Kentucky, along with 10 other representatives. As an introduced bill, it has been assigned to a committee for consideration but has not yet been voted on by the full House of Representatives.
Introduced Apr 30, 2026
This bill was introduced in the House of Representatives on April 30, 2026. It has been referred to the Committee on Ways and Means for review. For the bill to become law, it must pass through this committee, be approved by the full House, then go through a similar process in the Senate, and finally be signed by the President.
If this bill becomes law, you would no longer be required to pay capital gains tax on the profit from selling your family farm to a direct relative, such as a spouse, child, grandchild, or their spouse, as long as the property meets the definition of 'qualified farm property.' For the family member buying the farm, their tax cost for the property would generally be the same as your original cost. However, if they hold onto the farm for at least 10 years after the purchase, their tax cost would then increase to the fair market value of the farm at the time they bought it from you.
Supporters Say
Supporters argue this bill helps preserve family farms by easing the financial burden of generational transfers.
Critics Say
Critics might argue it creates a specific tax exemption that could be seen as unfair or lead to complex interpretations.
Those in favor would likely emphasize that the bill supports the continuity of farming traditions and reduces barriers for younger generations to take over family agricultural businesses, preventing farms from being sold outside the family due to high tax costs. Potential concerns could include how such an exclusion might affect overall tax revenue or whether it opens the door for similar exemptions for other types of property, leading to a less equitable tax system.