Internal Revenue Code · 26 U.S.C.
§ 1252. Gain from disposition of farm land
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 1252
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- December 30, 1969 by Pub. L. 91–172
- Last amended
- March 23, 2018 by Pub. L. 115–141
- Amendments
- 5 dated changes in the source credit
- Length
- 2 subsections · 349 words · about 2 min to read
- Defines
- 1 term
- Cross-references
- cites 2; cited by 2 Code sections and 5 other regulations
- Regulations
- 2 issued under this section
For purposes of this section, the term “farm land” means any land with respect to which deductions have been allowed under section 175 (relating to soil and water conservation expenditures).
For purposes of this section—
If the farm land is disposed of— | The applicable percentage is— |
|---|---|
Within 5 years after the date it was acquired | 100 percent. |
Within the sixth year after it was acquired | 80 percent. |
Within the seventh year after it was acquired | 60 percent. |
Within the eighth year after it was acquired | 40 percent. |
Within the ninth year after it was acquired | 20 percent. |
10 years or more years after it was acquired | 0 percent. |
Under regulations prescribed by the Secretary, rules similar to the rules of section 1245 shall be applied for purposes of this section.
(Added Pub. L. 91–172, title II, § 214(a), Dec. 30, 1969, 83 Stat. 572; amended Pub. L. 94–455, title XIX, §§ 1901(b)(3)(K), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1793, 1834; Pub. L. 98–369, div. A, title IV, § 492(b)(5), July 18, 1984, 98 Stat. 854; Pub. L. 99–514, title IV, § 402(b)(2), Oct. 22, 1986, 100 Stat. 2221; Pub. L. 113–295, div. A, title II, § 221(a)(85), Dec. 19, 2014, 128 Stat. 4049; Pub. L. 115–141, div. U, title IV, § 401(b)(32), Mar. 23, 2018, 132 Stat. 1204.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 1252
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 2 other sections
- § 175 Soil and water conservation expenditures; endangered species recovery expenditures
- § 1245 Gain from dispositions of certain depreciable property
Cited by 2 Code sections
- § 170(e)(3)(D) Charitable, etc., contributions and gifts
- § 751(c)(2) Unrealized receivables and inventory items
Cited in 5 regulations not issued under it
- § 1.367(a)-4 Special rule applicable to U.S. depreciated property.
- § 1.751-1 Unrealized receivables and inventory items.
- § 1.1251-1 General rule for treatment of gain from disposition of property used in farming where farm losses offset nonfarm income.
- § 1.1251-3 Definitions relating to section 1251.
- § 1.1251-4 Exceptions and limitations.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 115–141Parts changed in 2018: (a)(1) (a)(1)(A) (a)(2)
- Amended by Pub. L. 113–295Parts changed in 2014: (a)(1) (a)(1)(A)
- Amended by Pub. L. 99–514Parts changed in 1986: (a)(1)(A)
- Amended by Pub. L. 98–369Parts changed in 1984: (a)(1)
- Amended by Pub. L. 94–455Parts changed in 1976: (a)(1) (b)
- Added by Pub. L. 91–172
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter P Capital Gains and Losses
- Part IV SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES
Nearby sections
- § 1248 Gain from certain sales or exchanges of stock in certain foreign corporations
- § 1249 Gain from certain sales or exchanges of patents, etc., to foreign corporations
- § 1250 Gain from dispositions of certain depreciable realty
- § 1251 Repealed
- § 1252 Gain from disposition of farm land
- § 1253 Transfers of franchises, trademarks, and trade names
- § 1254 Gain from disposition of interest in oil, gas, geothermal, or other mineral properties
- § 1255 Gain from disposition of section 126 property
- § 1256 Section 1256 contracts marked to market
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2018—Subsec. (a)(1). Pub. L. 115–141, § 401(b)(32)(A), struck out “during a taxable year beginning” after “disposed of” in introductory provisions.
Subsec. (a)(1)(A). Pub. L. 115–141, § 401(b)(32)(B), substituted “section” for “sections” and “for expenditures” for “and 182 (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986) for expenditures”.
Subsec. (a)(2). Pub. L. 115–141, § 401(b)(32)(C), substituted “section” for “sections” and struck out “or 182 (relating to expenditures by farmers for clearing land)” before period at end.
2014—Subsec. (a)(1). Pub. L. 113–295, § 221(a)(85)(A), struck out “after December 31, 1969” after “beginning” in introductory provisions.
Subsec. (a)(1)(A). Pub. L. 113–295, § 221(a)(85)(B), struck out “after December 31, 1969,” after “taxpayer”.
1986—Subsec. (a)(1)(A). Pub. L. 99–514 substituted “(as in effect on the day before the date of the enactment of the Tax Reform Act of 1986)” for “(relating to expenditures by farmers for clearing land)”.
1984—Subsec. (a)(1). Pub. L. 98–369 struck out “, except that this section shall not apply to the extent section 1251 applies to such gain” after “of this subtitle” in last sentence.
1976—Subsec. (a)(1). Pub. L. 94–455, § 1901(b)(3)(K), substituted “ordinary income” for “gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231”.
Subsec. (b). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–514 applicable to amounts paid or incurred after Dec. 31, 1985, in taxable years ending after such date, see section 402(c) of Pub. L. 99–514, set out as an Effective Date of Repeal note under former section 182 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, see section 492(d) of Pub. L. 98–369, set out as a note under section 170 of this title.
Effective Date of 1976 Amendment
Amendment by section 1901(b)(3)(K) of Pub. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
Effective Date
Pub. L. 91–172, title II, § 214(c), Dec. 30, 1969, 83 Stat. 573, provided that: “The amendments made by this section [enacting this section] shall apply to taxable years beginning after December 31, 1969.”
Savings Provision
For provisions that nothing in amendment by Pub. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining liability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title.