Subsec. (g). Pub. L. 100–647, § 1004(a)(4), substituted “indebtedness” for “indebtedness of solvent farmers” in going and amended text generally speaking. Ahead of amendment, text read the following:
“(1) as a whole. —For purposes for this part and area 1017, the discharge by an experienced individual of qualified farm indebtedness of the taxpayer that is maybe maybe not insolvent at the time of the release will be treated when you look at the exact same manner as in the event that release had taken place if the taxpayer had been insolvent.
“(2) Qualified farm indebtedness. —For purposes of the subsection, indebtedness of a taxpayer will be treated as qualified farm indebtedness if—
“(A) such indebtedness had been incurred directly relating to the procedure because of the taxpayer regarding the trade or company of agriculture, and
“(B) 50 % or higher for the normal annual gross receipts associated with taxpayer when it comes to 3 taxable years preceding the year that is taxable that your release of these indebtedness does occur is owing to the trade or company of agriculture. (más…)