North Dakota Administrative Code
Title 81 - Tax Commissioner
Article 81-03 - Income Taxes and Privilege Taxes Based on Income
Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries
Section 81-03-02.1-07 - Adjustments for sale or lease of agricultural land to beginning farmer
Current through Supplement No. 394, October, 2024
Adjustments to determine net taxable income received from the sale or lease of agricultural land and from interest income received on a contract for deed are subject to the conditions and limitations established in North Dakota Century Code chapter 57-38 and as follows:
1. Net rental income up to twenty-five thousand dollars, interest income, capital gains, or ordinary income of an individual selling or leasing agricultural land to a beginning farmer is deductible, for North Dakota income tax purposes, only in the year that the income is reported on the individual's federal income tax return. Unused deductions may not be carried back or forward to another year.
2. Deductions for rental income may not be claimed by the landowner for lease agreements with more than one beginning farmer on the same tract or parcel of land.
3. A beginning farmer must be eighteen years of age or older at the time of the sale or lease. (See North Dakota Century Code section 14-10-09.)
4. A husband and wife living together who together purchase agricultural land are regarded as one beginning farmer.
General Authority: NDCC 57-38-56
Law Implemented: NDCC 57-38-01.2, 57-38-67, 57-38-68, 57-38-69, 57-38-70
