Iowa HF624 expands eligibility for the farm tenancy net income exclusion to include certain business entities.

Iowa HF624 modifies the farm tenancy net income exclusion to allow entities taxed as disregarded entities, partnerships, S corporations, trusts, or estates to qualify for the exclusion. This change makes the net income from a farm tenancy eligible for the exclusion if it passes through these entities to the individual, similar to direct income from a farm tenant. The bill takes effect immediately upon enactment and applies retroactively to tax years beginning on or after January 1, 2024.

Iowa HF624 expands eligibility for the farm tenancy net income exclusion to include certain business entities.

Iowa HF624 modifies the farm tenancy net income exclusion to allow entities taxed as disregarded entities, partnerships, S corporations, trusts, or estates to qualify for the exclusion. This change makes the net income from a farm tenancy eligible for the exclusion if it passes through these entities to the individual, similar to direct income from a farm tenant. The bill takes effect immediately upon enactment and applies retroactively to tax years beginning on or after January 1, 2024.