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of <h1>Gains from Rural Agricultural Land Sales Exempt from Capital Gains Tax; Urban Land Sales Remain Taxable Under Capital Gains.</h1> For tax purposes, agricultural land is categorized as either rural or urban. Gains from the sale of rural agricultural land are not taxable under Capital Gains because rural land is excluded from the definition of a capital asset. Conversely, gains from the sale of urban agricultural land are taxable under Capital Gains.
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