Sec. 8028. Limitation on deductions for certain farming

312 words·~1 min read·/bill/113/hr/1/ih/section-8028

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Section 464 is amended by striking any farming syndicate (as defined in subsection (c)) both places it appears in subsections

(a)and

(b)and inserting any taxpayer to whom subsection

(d)applies . Subsection

(c)of section 464 is hereby moved to the end of section 461 and redesignated as subsection (j). Such subsection

(j)is amended— by striking For purposes of this section in paragraph

(1)and inserting For purposes of subsection (i)(4) , and by adding at the end the following new paragraphs: For purposes of this subsection, the term farming has the meaning given to such term by section 464(e). For purposes of this subsection, the term limited entrepreneur means a person who— has an interest in an enterprise other than as a limited partner, and does not actively participate in the management of such enterprise. . Paragraph

(4)of section 461(i) is amended by striking section 464(c) and inserting subsection

(j). Section 464 is amended— by striking subsections

(e)and

(g)and redesignating subsections

(d)and

(f)as subsections

(c)and (d), respectively, and by inserting after subsection

(d)the following new subsection: For purposes of this section, the term farming means the cultivation of land or the raising or harvesting of any agricultural or horticultural commodity including the raising, shearing, feeding, caring for, training, and management of animals. For purposes of the preceding sentence, trees (other than trees bearing fruit or nuts) shall not be treated as an agricultural or horticultural commodity. . Subsection

(d)of section 464 of such Code, as redesignated by subsection (c), is amended— by striking paragraph

(1)and redesignating paragraphs (2), (3), and

(4)as paragraphs (1), (2), and (3), respectively, and by striking in the subsection heading. SUBSECTIONS

(a)AND

(b)TO APPLY TO Subparagraph

(A)of section 58(a)(2) is amended by striking section 464(c) and inserting section 461(j) .