No Capital Gains Tax on Family Farms Act
To amend the Internal Revenue Code of 1986 to provide an exclusion from gross income of gain from the sale of qualified farm property to qualified family members.
This bill, HB8591, proposes to change the tax rules for family farms. Specifically, it aims to exclude any profit from selling family farm property from being taxed as income, but only if the property is sold to a qualified family member. This means that when family members transfer farm property to each other, they would not have to pay taxes on the profit from the sale.
This bill would mainly affect family farms that are passed down within families. It could potentially save these farms from being taxed heavily when they are sold, making it easier for the next generation to take over and continue farming. However, only certain types of farm property and certain family members would qualify for this tax exclusion.
The bill was introduced on April 30, 2026, and referred to the House Committee on Ways and Means. This is the first step in the legislative process, where the bill will be reviewed and possibly revised before any further action is taken.
