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OB3 Banking Insights: IRS Notice 2025-71 & Agricultural Loan Income Exclusions

01.05.2026 | Duration: 20:29

In this episode we break down guidance that relates to IRC Section 139L, which creates an exclusion from income for interest received by qualified lenders on certain agricultural real estate loans.

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Podcast overview

Listen to the most recent In the Vault with KPMG podcast as Elizabeth L'Hommedieu and Paul Laures break down the recently issued IRS Notice 2025-71. This guidance relates IRC Section 139L, which creates an exclusion from income for interest received by qualified lenders on certain agricultural real estate loans.

In this episode, our leaders discuss the new guidance, including: 

  • Safe Harbor guidance and examples of qualifying security property
  • The impact of significant loan modifications and rules for secondary market acquisitions
  • How refinancing impacts loan qualification and when new funds can still qualify
  • Areas where additional clarification is needed, such as coordination with Section 265

Don't miss this essential discussion for lenders, tax professionals, and anyone involved in agricultural finance. Tune in to stay ahead of these important tax developments!

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OB3 Banking Insights: Navigating Agricultural Loans

This episode provides essential guidance on the new tax exemption and its potential impact on agricultural lending.

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Meet our podcast team

Image of Elizabeth B. L'Hommedieu
Elizabeth B. L'Hommedieu
Principal, Washington National Tax, KPMG US
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Image of Elizabeth B. L'Hommedieu
Elizabeth B. L'Hommedieu
Principal, Washington National Tax, KPMG US
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