26 U.S.C. § 1301
Averaging of farm income
# (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.
Source: view the official text
Cited by 33
- 26 CFR § 1.1036-1 — Stock for stock of the same corporation.
- 26 CFR § 1.1301-1 — Averaging of farm and fishing income.
- 26 CFR § 1.1348-1 — Fifty-percent maximum tax on earned income.
- 26 CFR § 1.36B-1 — Premium tax credit definitions.
- 26 CFR § 1.402(a)-1 — Taxability of beneficiary under a trust which meets the requirements of section 401(a).
- 26 CFR § 1.402(b)-1 — Treatment of beneficiary of a trust not exempt under section 501(a).
- 26 CFR § 1.402(d)-1 — Effect of section 402(d).
- 26 CFR § 1.403(a)-1 — Taxability of beneficiary under a qualified annuity plan.
- 26 CFR § 1.403(c)-1 — Taxability of beneficiary under a nonqualified annuity.
- 26 CFR § 1.45R-1 — Definitions.
- 26 CFR § 1.5000A-1 — Maintenance of minimum essential coverage and liability for the shared responsibility payment.
- 26 CFR § 1.507-3 — Special rules; transferee foundations.
Show 21 more
- 26 CFR § 1.508-3 — Governing instruments.
- 26 CFR § 1.6055-1 — Information reporting for minimum essential coverage.
- 26 CFR § 1.668(b)-3A — Computation of the beneficiary's income and tax for a prior taxable year.
- 26 CFR § 1.668(b)-4A — Information requirements with respect to beneficiary.
- 26 CFR § 1.691(a)-3 — Character of gross income.
- 26 CFR § 1.702-1 — Income and credits of partner.
- 26 CFR § 1.72-11 — Amounts not received as annuity payments.
- 26 CFR § 1.72-17 — Special rules applicable to owner-employees.
- 26 CFR § 1.72-18 — Treatment of certain total distributions with respect to self-employed individuals.
- 26 CFR § 301.6511(d)-2 — Overpayment of income tax on account of net operating loss or capital loss carrybacks.
- 26 CFR § 301.9100-7T — Time and manner of making certain elections under the Tax Reform Act of 1986.
- 26 CFR § 54.4980H-1 — Definitions.
- 26 CFR § 54.9801-2 — Definitions.
- 26 CFR § 54.9801-2T — Definitions (temporary).
- 26 CFR § 57.2 — Explanation of terms.
- 26 CFR § 5c.1305-1 — Special income averaging rules for taxpayers otherwise required to compute tax in accordance with § 5c.1256-3.
- 26 U.S.C. § 125 — Cafeteria plans
- 26 U.S.C. § 280C — Certain expenses for which credits are allowable
- 26 U.S.C. § 36B — Refundable credit for coverage under a qualified health plan
- 26 U.S.C. § 55 — Alternative minimum tax imposed
- 26 U.S.C. § 9832 — Definitions
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