H.R. 396 (105th): To amend the Internal Revenue Code of 1986 to provide that the alternative minimum tax shall not ...

...apply to installment sales of farm property.

105th Congress, 1997–1998. Text as of Jan 09, 1997 (Introduced).

Status & Summary | PDF | Source: GPO

HR 396 IH

105th CONGRESS

1st Session

H. R. 396

To amend the Internal Revenue Code of 1986 to provide that the alternative minimum tax shall not apply to installment sales of farm property.

IN THE HOUSE OF REPRESENTATIVES

January 9, 1997

Mr. BARRETT of Nebraska introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to provide that the alternative minimum tax shall not apply to installment sales of farm property.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. MINIMUM TAX NOT TO APPLY TO FARMERS’ INSTALLMENT SALES.

    (a) IN GENERAL- The last sentence of paragraph (6) of section 56(a) of the Internal Revenue Code of 1986 (relating to treatment of installment sales in computing alternative minimum taxable income) is amended to read as follows: ‘This paragraph shall not apply to any disposition--

        ‘(A) in the case of a taxpayer using the cash receipts and disbursements method of accounting, described in section 453(l)(2)(A) (relating to farm property), or

        ‘(B) with respect to which an election is in effect under section 453(l)(2)(B) (relating to timeshares and residential lots).’

    (b) EFFECTIVE DATES-

      (1) IN GENERAL- The amendment made by this section shall apply to taxable years beginning after December 31, 1987.

      (2) SPECIAL RULE FOR 1987- In the case of taxable years beginning in 1987, the last sentence of section 56(a)(6) of the Internal Revenue Code of 1986 (as in effect for such taxable years) shall be applied by inserting ‘or in the case of a taxpayer using the cash receipts and disbursements method of accounting, any disposition described in section 453(l)(2)(A)’ after ‘section 453C(e)(4)’.

      (3) WAIVER OF STATUTE OF LIMITATIONS- If refund or credit of any overpayment of tax resulting from the amendment made by subsection (a) is prevented at any time before the close of the 1-year period beginning on the date of the enactment of this Act by the operation of any law or rule of law (including res judicata), refund or credit of such overpayment (to the extent attributable to such amendment) may, nevertheless, be made or allowed if claim therefore is filed before the close of such 1-year period.