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INTERNAL REVENUE CODE OF 1954
of the real property is subject to a business lease, proper allocation to the premises covered by such lease shall be made of the indebtedness incurred by the lessor with respect to the real property. (7) SPECIAL RULE APPLICABLE TO TRUSTS DESCRIBED I N SEC-
TION 401 (a).—In the application of paragraph (1), if a trust described in section 401(a) forming part of a stock bonus, pension, or profit-sharing plan of an employer lends any money to another trust described in section 401(a) forming part of a stock bonus, pension, or profit-sharing plan of the same employer, such loan shall not be treated as an indebtedness of the borrowing trust, except to the extent that the loaning trust— (A) incurs any indebtedness in order to make such loan; (B) incurred indebtedness before the making of such loan which would not have been incurred b u t for the making of such loan; or (C) incurred indebtedness after the making of such loan which would not have been incurred b u t for the making of such loan and which was reasonably foreseeable a t the time of making such loan. (d) PERSONAL PROPERTY LEASED W I T H
R E A L PROPERTY.—Eor
purposes of this section, the term "real property" and the term "premises" include personal property of the lessor leased by it to a lessee of its real estate if the lease of such personal property is made under, or in connection with, the lease of such real estate. SEC. 515. TAXES OF FOREIGN COUNTRIES AND POSSESSIONS OF THE UNITED STATES. The amount of taxes imposed by foreign countries and possessions of the United States shall be allowed as a credit against the tax of an organization subject to the tax imposed by section 511 to the extent provided in section 901; and in the case of the tax imposed by section 511, the term "taxable income" as used in section 901 shall be read as "unrelated business taxable income". PART III—FARMERS' COOPERATIVES Sec. 521. Exemption of farmers' cooperatives from tax. Sec. 522. Tax on farmers' cooperatives. SEC. 521. EXEMPTION OF FARMERS' COOPERATIVES FROM TAX. (a) EXEMPTION FROM T A X. — A farmers' cooperative organization described in subsection (b)(1) shall be exempt from taxation under this subtitle except as otherwise provided in section 522. Notwithstanding section 522, such an organization shall be considered an organization exempt from income taxes for purposes of any law which refers to organizations exempt from income taxes. (b) APPLICABLE RULES. — (1) E X E M P T FARMERS' COOPERATIVES.—The farmers'
coopera-
tives exempt from taxation to the extent provided in subsection (a) are farmers', fruit growers', or like associations organized and operated on a cooperative basis (A) for the purpose of marketing the products of members or other producers, and turning back to them the proceeds of sales, less the necessary marketing expenses, on the basis of either the quantity or the value of the products § 514(c)(6)
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