Sec. 224. Election to waive application of certain modifications to farming losses
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Section 2303 of the CARES Act is amended by adding at the end the following new subsection:
(a)and
(b)If a taxpayer who has a farming loss (within the meaning of section 172(b)(1)(B)(ii) of the Internal Revenue Code of 1986) for a taxable year beginning in 2018, 2019, or 2020 makes an election under this paragraph, then— the amendments made by subsection
(a)shall not apply to any taxable year beginning in 2018, 2019, or 2020, and the amendments made by subsection
(b)shall not apply to any net operating loss arising in any taxable year beginning in 2018, 2019, or 2020. Except as provided in clause (ii)(II), an election under this paragraph shall be made in such manner as may be prescribed by the Secretary. Such election, once made for any taxable year, shall be irrevocable for such taxable year. An election under this paragraph shall be made by the due date (including extensions of time) for filing the taxpayer's return for the taxable year. In the case of any taxable year for which the taxpayer has filed a return of Federal income tax before the date of the enactment of the American Workers, Families, and Employers Assistance Act which disregards the amendments made by subsections
(a)and (b), such taxpayer shall be treated as having made an election under this paragraph unless the taxpayer modifies such return to reflect such amendments by the due date (including extensions of time) for filing the taxpayer's return for the first taxable year ending after the date of the enactment of the American Workers, Families, and Employers Assistance Act . The Secretary of the Treasury (or the Secretary's delegate) shall issue such regulations and other guidance as may be necessary to carry out the purposes of this paragraph, including regulations and guidance relating to the application of the rules of section 172(a) of the Internal Revenue Code of 1986 (as in effect before the date of the enactment of the CARES Act) to taxpayers making an election under this paragraph. The last sentence of section 172(b)(3) of the Internal Revenue Code of 1986 and the last sentence of section 172(b)(1)(B) of such Code shall not apply to any election— which was made before the date of the enactment of the American Workers, Families, and Employers Assistance Act , and which relates to the carryback period provided under section 172(b)(1)(B) of such Code with respect to any net operating loss arising in taxable years beginning in 2018 or 2019. . The amendment made by this section shall take effect as if included in section 2303 of the CARES Act ( Public Law 116–136 ).
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Sec. 224
Election to waive application of certain modifications to farming losses
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