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

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-12-29</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

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

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001213601</rptOwnerCik>
            <rptOwnerName>CUMMING IAN M</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>529 EAST SOUTH TEMPLE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SALT LAKE CITY</rptOwnerCity>
            <rptOwnerState>UT</rptOwnerState>
            <rptOwnerZipCode>84102</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, Par Value $.01</value>
            </securityTitle>
            <transactionDate>
                <value>2006-12-29</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>5</transactionFormType>
                <transactionCode>G</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>25000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>538829</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, Par Value $.01</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2543756</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) 5,704 shares of HomeFed common stock beneficially owned by the Reporting Person's wife (b) 3,826 shares held
 in two trusts for which the Reporting person's wife is trustee (c) 60,000 shares of HomeFed common stock held by a limited
 liability company owned 50% by the Reporting Person and 50% by the Reporting Person's wife 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, Chairman 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/ Ian M. Cumming</signatureName>
        <signatureDate>2007-01-10</signatureDate>
    </ownerSignature>
</ownershipDocument>
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X0202
4
2006-12-29
0
0000833795
HOMEFED CORP
HOFD
0001213601
CUMMING IAN M
529 EAST SOUTH TEMPLE
SALT LAKE CITY
UT
84102
1
0
1
0
Common Stock, Par Value $.01
2006-12-29
5
G
0
25000
D
538829
D
Common Stock, Par Value $.01
2543756
I
See Explanation.
Not applicable.
Consists of (a) 5,704 shares of HomeFed common stock beneficially owned by the Reporting Person's wife (b) 3,826 shares held
 in two trusts for which the Reporting person's wife is trustee (c) 60,000 shares of HomeFed common stock held by a limited
 liability company owned 50% by the Reporting Person and 50% by the Reporting Person's wife 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, Chairman 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/ Ian M. Cumming
2007-01-10