Three Deferral Likely Applies Starting in 2026
The effective date is for sales and exchanges in taxable years beginning after July 2, 2025
We have had readers reach out asking about the new Section 1062 four installment (three-year) deferral for sale of qualifying farmland. We have posted on this before, but we don’t we have emphasized that this deferral is available only for:
1. Sales and exchanges that occur after July 4, 2025, and
2. For taxable years beginning after same date.
You must meet both requirements in order to defer the tax. This means that all calendar year 2025 taxpayers are unable to use the new provision. This would start applying for entities whose tax year starts August 1, 2025, or later and for most individuals it would apply starting in 2026.