S. 930 — A bill to amend the Internal Revenue Code of 1986 to exclude from gross income capital gains from the sale of certain farmland property which are reinvested in individual retirement plans.

This section establishes an exclusion from gross income for gain from the sale or exchange of qualified farmland property (i.e., U.S. real property used or leased by the taxpayer for farming for substantially all of the prior 10-year period) to a qualified farmer (i.e., an individual actively engaged in farming per 7 U.S.C. 1308-1(b) and (c)), up to the amount the taxpayer contributes to an individual retirement plan within 60 days of the sale. The exclusion requires an irrevocable election and a signed agreement by the farmer consenting to recapture; if within 10 years the farmer disposes of the property or ceases its farm use, the farmer is liable for tax on the excluded gain at the highest capital gains rate plus the 3.8% net investment income tax rate under IRC §1411, plus underpayment interest (prorated for partial dispositions), with an extended three-year statute of limitations and exceptions for involuntary conversions and like-kind exchanges. This section also increases the annual IRA contribution limit under IRC §219(b)(1)(A) by the lesser of such qualified farmland gain recognized in the taxable year (including 60 days prior) or the excluded amount (thus, preventing double tax benefits by disallowing related deductions under §219).