Page:United States Statutes at Large Volume 83.djvu/598

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[83 STAT. 570]
[83 STAT. 570]
PUBLIC LAW 91-000—MMMM. DD, 1969

570

PUBLIC LAW 91-172-DEC. 30, 1969

[83 STAT.

" (B) the gross income derived from such trade or business Gains and losses on the disposition of farm recapture property referred to in section 1231(a) (determined without regard to th^ section or section 1245(a)) shall not be taken into account. "(3) FARM NET INCOME.—The term 'farm net income' means the amount by which the amount referred to in paragraph (2) (B\ exceeds the amount referred to in paragraph (2)(A).

Post, p. 646. Post, p. 571.

it

" (4) TRADE OR BUSINESS OF FARMING.— " (A) HORSE RACING.—In the case of a taxpayer engaged

f

in the raising of horses, the term 'trade or business of farming' includes the racing of horses. " (B) SEVERAL BUSINESSES OF FARMING.—If a taxpayer is

engaged in more than one trade or business of farming all such trades and businesses shall be treated as one trade or business. "(5) POTENTIAL GAIN.—The term 'potential gain' means an amount equal to the excess of the fair market value of property over its adjusted basis, but limited in the case of land to the extent of the deductions allowable in respect to such land under sections ^"^^ (relating to soil and water conservation expenditures) and 182 (relating to expenditures by farmers for clearing land) for the taxable year and the 4 preceding taxable years."

ll%l^c\7V' 76 Stat. 1063.

(b) CONFORMING AMENDMENTS.—

(1) Section 301(b)(1)(B) (ii) (relating to corporate distributions of property) is amended by striking out "or 1250(a)" and inserting in lieu thereof "1250(a), 1251(c), or 1252(a)". (2) Section 301(d)(2)(B) (relating to the basis of property distributed by a corporation) is amended by striking out "or 1250(a)" and inserting in lieu thereof "1250(a), 1251(c), or 1252(a)". (3) Section 312(c)(3) (relating to adjustment to corporate earnings and profits) is amended by striking out "or 1250 (a)" and inserting in lieu thereof "1250 (a),1251 (c), or 1252 (a) ". (4) Section 341(e) (12) (relating to nonapplication of section 1245(a) with respect to collapsible corporations) is amended by striking out "and 1250(a)" and inserting in lieu thereof "1250(a), 1251(c), and 1252(a)". (5) Section 453(d)(4)(B) (relating to distribution of installment obligations under certain liquidations) is amended by striking out "or 1250(a)" and inserting in lieu thereof "1250(a), 1251 (c), or 1252(a)". (6) Section 751(c) (relating to unrealized receivables in partnership transactions) is amended by striking out "and section 1250 property (as defined in section 1250(c))" and inserting in lieu thereof "section 1250 property (as defined in section 1250(c)), farm recapture property (as defined in section 1251(e)(1))? ^^^ farm land (as defined in section 1252(a))"; and by striking out "1250(a)" and inserting in lieu thereof "1250(a), 1251(c), or 1252(a)". (7) The table of sections for part IV of subchapter P of chapter 1 is amended by adding at the end thereof the following: '

"Sec. 1251. Gain from disposition of property used in farming where farm losses offset nonfarm income." (c) EFFECTIVE DATES.—The amendments made by this section shall

apply to taxable years beginning after December 31, 1969.