The OBBBA has created two new IRC Sections both of which involve agricultural real estate in one way or another. New Section 139L provides a tax break for lenders that loan money where land that is used in farming secures the loan. In that situation 25% of the interest the lender receives is not taxable. That also means that a portion of the lender’s otherwise deductible expenses associated with the loan are not deductible, and a formula is provided to compute that amount. Also, there are basis implications.
Listen to this episode with a 7-day free trial
Subscribe to Agricultural Law and Taxation by Roger McEowen to listen to this post and get 7 days of free access to the full post archives.
