<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-12-15</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000833795</issuerCik>
        <issuerName>HOMEFED CORP</issuerName>
        <issuerTradingSymbol>HOFD</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000924255</rptOwnerCik>
            <rptOwnerName>STEINBERG JOSEPH S</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O LEUCADIA NATIONAL CORP</rptOwnerStreet1>
            <rptOwnerStreet2>315 PARK AVENUE SOUTH</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10010</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chairman</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, Par Value $.01</value>
            </securityTitle>
            <transactionDate>
                <value>2006-12-15</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>5</transactionFormType>
                <transactionCode>G</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>40000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>52001</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, Par Value $.01</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>3164045</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See explanation.</value>
                    <footnoteId id="F2"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Not applicable.</footnote>
        <footnote id="F2">Consists of (a) 3,676 shares of HomeFed common stock beneficially owned by the Reporting Person's wife and daughter (b)
 61,793 shares held in three trusts for which the reporting person is a trustee and has power to vote and sell the shares (c)
 624,350 shares transferred to a grantor retained annuity trust (GRAT) of which the Reporting Person is the beneficiary and
 (d) 2,474,226 shares of HomeFed common stock held by Leucadia National Corporation, a public company (&quot;Leucadia&quot;).  The
 Reporting Person is a significant shareholder, President and Director of Leucadia.  The reporting person disclaims
 beneficial ownership of the HomeFed common stock owned by Leucadia, except to the extent of his pecuniary interest, if any.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Joseph S. Steinberg</signatureName>
        <signatureDate>2007-01-03</signatureDate>
    </ownerSignature>
</ownershipDocument>
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X0202
4
2006-12-15
0
0000833795
HOMEFED CORP
HOFD
0000924255
STEINBERG JOSEPH S
C/O LEUCADIA NATIONAL CORP
315 PARK AVENUE SOUTH
NEW YORK
NY
10010
1
1
1
0
Chairman
Common Stock, Par Value $.01
2006-12-15
5
G
0
40000
D
52001
D
Common Stock, Par Value $.01
3164045
I
See explanation.
Not applicable.
Consists of (a) 3,676 shares of HomeFed common stock beneficially owned by the Reporting Person's wife and daughter (b)
 61,793 shares held in three trusts for which the reporting person is a trustee and has power to vote and sell the shares (c)
 624,350 shares transferred to a grantor retained annuity trust (GRAT) of which the Reporting Person is the beneficiary and
 (d) 2,474,226 shares of HomeFed common stock held by Leucadia National Corporation, a public company ("Leucadia").  The
 Reporting Person is a significant shareholder, President and Director of Leucadia.  The reporting person disclaims
 beneficial ownership of the HomeFed common stock owned by Leucadia, except to the extent of his pecuniary interest, if any.
/s/ Joseph S. Steinberg
2007-01-03