This bill proposes to amend the Internal Revenue Code of 1986 by creating a new section, 121A, which would exclude from gross income any gain realized from the sale or exchange of qualified farm property . This significant tax benefit is specifically designed for transactions involving the transfer of such property to a qualified family member . Qualified farm property is defined as real property located in the United States that has been owned and used as a farm for farming purposes by the taxpayer for at least two years during the eight-year period preceding the sale. A qualified family member includes the taxpayer's spouse, lineal descendants of the taxpayer or their spouse or parents, and the spouses of such lineal descendants. The bill also establishes special rules for the basis of the property; initially, the family member's basis will be the seller's adjusted basis. However, if the property is not sold or disposed of for a 10-year period following the transfer, the basis will increase to the fair market value at the time of the original sale, effectively eliminating capital gains on appreciation prior to the family transfer. These provisions would apply to sales or exchanges occurring after the date of the Act's enactment.