“(1) as a whole. —For purposes of the area and area 1017, the release by an experienced individual of qualified farm indebtedness of a taxpayer that is perhaps maybe maybe not insolvent during the time of the release will probably be addressed into the manner that is same in the event that release had happened if the taxpayer had been insolvent.
“(2) Qualified farm indebtedness. —For purposes for this subsection, indebtedness of the taxpayer will probably be addressed as qualified farm indebtedness if—
“(A) such indebtedness ended up being incurred straight associated with the procedure by the taxpayer regarding the trade or company of agriculture, and
“(B) 50 % or higher for the normal yearly gross receipts associated with the taxpayer for the 3 taxable years preceding the taxable 12 months in that the release of these indebtedness happens is owing to the trade or company of agriculture.
“(3) Qualified person. —For purposes of the subsection, the expression ‘qualified person’ means an individual described in part 46(c)(8)(D)(iv). ”
1986—Subsec. (a)(1 C that is)(). Pub. L. 99–514, § 822(a), struck out subpar. (C) relating to 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. Continue reading