Washington farm groups seek changes to capital gains tax bill

 

By Don Jenkins, Capital Press (OR)

Feb 15, 2021

 

OLYMPIA Farm groups are lobbying to amend a capital gains tax proposal, hoping to head off a tax hit for cattlemen and retired farmers.

 

As proposed by Gov. Jay Inslee and introduced by Democrats in the Legislature, active farmers and ranchers who sell their land would be exempted from the tax on gains from the one-time sale of assets.

 

To qualify for the exemption, however, the producer must have had "regular, continuous and substantial involvement in the operation" for the previous 10 years.

 

To figure out what that means, the state Department of Revenue would rely on a federal tax law regarding "material participation," a term that the Internal Revenue Service offers guidance to interpret.

 

Washington Farm Bureau...

 

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https://www.capitalpress.com/ag_sectors/livestock/washington-farm-groups-seek-changes-to-capital-gains-tax-bill/article_5db29454-6d75-11eb-8a72-4fe90b579c2a.html