Iowa SF19 modifies the farm tenancy net income exclusion to include income from entities taxed as disregarded entities, partnerships, S corporations.

Iowa SF19 amends the farm tenancy net income exclusion to allow income from a farm tenancy agreement earned by entities taxed as disregarded entities, partnerships, S corporations, trusts, or estates to be eligible for the exclusion. This change makes the income from these entities eligible for the exclusion in the same manner as if the income passed directly from the farm tenant to the eligible individual. The bill takes effect upon enactment and applies retroactively to tax years beginning on or after January 1, 2024.

Iowa SF19 modifies the farm tenancy net income exclusion to include income from entities taxed as disregarded entities, partnerships, S corporations.

Iowa SF19 amends the farm tenancy net income exclusion to allow income from a farm tenancy agreement earned by entities taxed as disregarded entities, partnerships, S corporations, trusts, or estates to be eligible for the exclusion. This change makes the income from these entities eligible for the exclusion in the same manner as if the income passed directly from the farm tenant to the eligible individual. The bill takes effect upon enactment and applies retroactively to tax years beginning on or after January 1, 2024.