KANSAS CITY, MISSOURI (RFD News) — Farmers selling farmland may now be able to spread out their tax payments over several years under a new provision. However, there are a few requirements.
Farm CPA Paul Neiffer says the land must have been actively farmed for at least 10 years before it is sold. It also has to stay in farming for 10 years after the sale, with that agreement recorded with the property.
He says the full income from the sale is still reported right away, but the taxes don’t all have to be paid at once.
Instead, 25 percent of the tax is due April 15 after the sale, with the rest paid over the next three years.
There’s also some confusion around timing.
While the rule applies to sales after July 4, 2025, it applies only to tax years that begin after that date. For most farmers, that means it won’t apply until the 2026 tax year.
Neiffer says the benefit depends on interest rates, but spreading out payments could help lower the overall tax burden.
Jeramy Stephens, with National Land Realty, says that despite today’s economic headwinds, farmland remains a resilient asset — and understanding local conditions is key to making sound decisions.
October 01, 2025 03:42 PM
·
Under this agreement, SCDA will administer a program covering infrastructure and timber losses, as well as future economic and market losses.
September 30, 2025 04:31 PM
·
Livestock and government payments provide a boost, but crop receipts and rising expenses keep pressure on margins. Strong financial planning remains key in a volatile environment.
September 30, 2025 10:45 AM
·
RFD-TV Farm Legal and Taxation expert, Roger McEowen, with the Washburn School of Law, joined us Monday to break down the changes and explain what producers should know.
September 29, 2025 01:57 PM
·
Dividing up a family farming operation can be challenging, especially for children who may not want to become farmers themselves.
September 29, 2025 01:24 PM
·
Land values are increasing faster than farm income, making it more challenging for young and beginning farmers to expand, but supporting equity for current landowners.
September 29, 2025 09:58 AM
·
