New Section 1062 Saves About 16% on Taxes

Farmers can elect to defer paying tax on land sales and it will save a bit

Photo by Ella Baxter on Unsplash

The One Big Beautiful Bill Act added a new Section 1062 that allows farmers an election to pay the income tax related to farmland sales over a three-year period. This election requires the buyer of the land to agree to keep it in farming for at least 10 years.

The original proposal for Section 1062 would allow farmers to not pay any tax on farmland gains, however, the final Bill simply allows the farmer to defer paying the tax.