“(1) as a whole. —For purposes with this area and area 1017, the release by a professional individual of qualified farm indebtedness of the taxpayer that is perhaps not insolvent at the time of the release will probably be treated within the exact same way as in the event that release had happened as soon as the taxpayer had been insolvent.
“(2) Qualified farm indebtedness. —For purposes with this subsection, indebtedness of the taxpayer will be addressed as qualified farm indebtedness if—
“(A) such indebtedness ended up being incurred directly regarding the the procedure by the taxpayer associated with trade or company of agriculture, and
“(B) 50 % or maybe more of this normal yearly gross receipts regarding the taxpayer when it comes to 3 taxable years preceding the year that is taxable that your release of these indebtedness does occur is due to the trade or company of agriculture.
“(3) Qualified person. —For purposes of the subsection, the word ‘qualified person’ means an individual described in area 46(c)(8)(D)(iv). ”
1986—Subsec. (a)(1 C that is)(). Pub. L. 99–514, § 822(a), struck down subpar. (C) associated with exclusion from revenues in the event that indebtedness released is qualified company indebtedness.
Subsec. (a)(2). Pub. L. 99–514, § 822(b)(1), substituted “Subparagraph (B) of paragraph (1)” for “Subparagraphs (B) and (C) of paragraph (1)” in subpar. (A), struck down subpar. (A) designation and going, and struck down subpar. (B) providing that insolvency exclusion takes precedence over qualified company exclusion.
Subsec. (b)(2)(B). Pub. L. 99–514, § 231(d)(3)(D), substituted business that is“General” for “Research credit and basic company credit” in heading and amended text, since amended by this Act (Pub. Continue reading “Subsec. (g). Pub. L. 100–647, § 1004(a)(4), substituted “indebtedness” for “indebtedness of solvent farmers” in going and amended text generally speaking. Ahead of amendment, text read the following:”