Line 18: Farm Tenancy Income Exclusion

Taxpayers who are retired farmers who have materially participated in a farming business for ten years in the aggregate and have held real property used in a farming business for at least ten years may elect to exclude income received from a farm tenancy agreement covering that real property. Include the IA 125 with the return.

For more information about this exclusion, see Iowa Code section 422.7(14) and Iowa Administrative Code rule 701–302.88.