A bill for an act excluding the net capital gain from the sale of gold or silver from the calculations of Iowa net income for purposes of the individual income tax, and including effective date and retroactive applicability provisions.

2025-2026 Regular Session

HF 567 allows Iowa taxpayers to exclude net gains from gold/silver sales from Iowa net income; separate-filer allocation applies; effective immediately, retroactive to 2025.

Subcommittee recommends passage.

#capitalgains #gold #incometaxes #silver

Overview

HF 567 proposes to exclude the net capital gain from the sale of gold or silver from the calculation of Iowa net income for purposes of the individual income tax. The bill defines what counts as “gold or silver,” specifies how the exclusion applies to married taxpayers filing separately, and provides for immediate effect with retroactive applicability to tax years beginning on or after January 1, 2025. The bill was introduced on February 24, 2025, and, as of March 26, 2025, the House Subcommittee recommended passage.

Key Provisions

Exclusion of net capital gain from gold/silver sales. The bill adds a new subsection to Iowa Code 422.7 that allows individual taxpayers to subtract the net capital gain from the sale of gold or silver when calculating Iowa net income for the Iowa individual income tax.

Married filing separately allocation. For married individuals who file separate state returns, the combined annual net capital gain exclusion is allocated between spouses in proportion to each spouse’s respective net capital gain relative to the total net capital gain.

Definition of “gold or silver.” The term includes bars, coins, ingots, commemorative medallions, or pure gold or silver in any form.

Effectiveness and retroactivity.

The act takes effect upon enactment.
It applies retroactively to tax years beginning on or after January 1, 2025.

Who Is Affected

Individual Iowa taxpayers with net capital gains from the sale of gold or silver will benefit from the exclusion.

Married couples filing separately will see the exclusion allocated between them according to each spouse’s share of net capital gains.

Tax preparers and Iowa Department of Revenue will need to implement the new subtraction and the allocation rule.

Timeline and Procedural Details

Introduced: February 24, 2025

Subcommittee actions:

February 24, 2025 — referred to Ways and Means
March 18, 2025 — Subcommittee members named (Boden, McBurney, Wills)
March 26, 2025 — Subcommittee recommends passage
March 26, 2025 — Subcommittee meeting announced for March 26 (House Lounge 2)

Effective date: Immediate upon enactment

Retroactive applicability: Applies to tax years beginning on or after January 1, 2025

Potential Impacts and Considerations

Tax liability impact for individuals with gains from selling gold or silver, potentially reducing Iowa net income and related tax liability.

For couples filing jointly, the bill does not specify a joint allocation—rather, it addresses separate returns; the allocation mechanism for those filing separately could influence planning for high-value precious metal gains.

Retroactivity means taxpayers with 2025 tax year activities (and beyond) could benefit, and taxpayers may consider amendments for prior 2025-related filings if relevant.

Implementation would require updating Iowa tax forms and instructions to reflect the new subtraction and the apportionment method for married filing separately.

Definitions at a Glance

“Gold or silver” = bars, coins, ingots, commemorative medallions, or pure gold/silver in any form.

In short, HF 567 would allow Iowa individual taxpayers to exclude gains from the sale of precious metals from net income calculations, with specific rules for married couples filing separately, and would take effect immediately with retroactive applicability to 2025 tax years.

Bill