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Code · U.S. Code · Title 26 - INTERNAL REVENUE CODE · CHAPTER 1— NORMAL TAXES AND SURTAXES · Subchapter Q— Readjustment of Tax Between Years and Special Limitations · § 1301

§ 1301. Averaging of farm income

1,452 words·~7 min read·/usc/title-26/section-1301

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)In general At the election of an individual engaged in a farming business or fishing business, the tax imposed by section 1 for such taxable year shall be equal to the sum of—
(1)a tax computed under such section on taxable income reduced by elected farm income, plus
(2)the increase in tax imposed by section 1 which would result if taxable income for each of the 3 prior taxable years were increased by an amount equal to one-third of the elected farm income.
Any adjustment under this section for any taxable year shall be taken into account in applying this section for any subsequent taxable year.
(b)Definitions In this section—
(1)Elected farm income
(A)In general The term “elected farm income” means so much of the taxable income for the taxable year—
(i)which is attributable to any farming business or fishing business; and
(ii)which is specified in the election under subsection (a).
(B)Treatment of gains For purposes of subparagraph (A), gain from the sale or other disposition of property (other than land) regularly used by the taxpayer in such a farming business or fishing business for a substantial period shall be treated as attributable to such a farming business or fishing business.
(2)Individual The term “individual” shall not include any estate or trust.
(3)Farming business The term “farming business” has the meaning given such term by section 263A(e)(4).
(4)Fishing business The term “fishing business” means the conduct of commercial fishing as defined in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802).
(c)Regulations The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this section, including regulations regarding—
(1)the order and manner in which items of income, gain, deduction, or loss, or limitations on tax, shall be taken into account in computing the tax imposed by this chapter on the income of any taxpayer to whom this section applies for any taxable year, and
(2)the treatment of any short taxable year.
(Added Pub. L. 105–34, title IX, § 933(a), Aug. 5, 1997, 111 Stat. 881; amended Pub. L. 108–357, title III, § 314(b), Oct. 22, 2004, 118 Stat. 1468.)
Connections11 cite this · traces to 2
78 references not yet in our index
  • Pub. L. 105–34, title IX, § 933(a)
  • 111 Stat. 881
  • Pub. L. 108–357, title III, § 314(b)
  • 118 Stat. 1468
  • Pub. L. 88–272, title II, § 232(a)
  • 78 Stat. 106
  • Pub. L. 91–172, title III, § 311(a)
  • 83 Stat. 586
  • Pub. L. 98–369, div. A, title I, § 173(b)
  • 98 Stat. 704
  • Pub. L. 99–514, title I
  • 100 Stat. 2117
  • act Aug. 16, 1954, ch. 736
  • 68A Stat. 334
  • Pub. L. 88–272
  • Pub. L. 91–172, title III, § 311(b)
  • Pub. L. 94–455, title VII, § 701(f)(1)
  • 90 Stat. 1580
  • Pub. L. 95–30, title I, § 102(b)(15)
  • 91 Stat. 138
  • Pub. L. 95–600, title I, § 101(d)(2)
  • 92 Stat. 2770
  • Pub. L. 95–615, § 202(g)(5)
  • 92 Stat. 3100
  • Pub. L. 96–222, title I, § 108(a)(1)(A)
  • 94 Stat. 223
  • Pub. L. 97–34, title I, § 111(b)(3)
  • 95 Stat. 194
  • Pub. L. 97–248, title II, § 265(b)(2)(B)
  • 96 Stat. 547
  • Pub. L. 98–369, div. A, title I, § 173(a)
  • 98 Stat. 703
  • act Aug. 16, 1964, ch. 736
  • 68A Stat. 335
  • 78 Stat. 107
  • Pub. L. 91–172, title III, § 311(d)(1)
  • 83 Stat. 587
  • Pub. L. 94–455, title XIX, § 1901(b)(8)(G)
  • 90 Stat. 1795
  • Pub. L. 97–34, title I, § 111(b)(4)
+ 38 more
Citation graph
cites case law
§ 1301
Averaging of farm income
Stat.×6
U.S.C.×3
Fed. Reg.×2
Pub. L.Pub. L. 105–34, title IX, § 933(a)
Stat.111 Stat. 881
Pub. L.Pub. L. 108–357, title III, § 314(b)
Stat.118 Stat. 1468
Pub. L.Pub. L. 88–272, title II, § 232(a)
Cites 80 · showing 7Cited by 11 across 3 sources
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