“(1) as a whole. —For purposes of the part and part 1017, the release by an experienced individual of qualified farm indebtedness of the taxpayer that is perhaps perhaps 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 as soon as the taxpayer had been insolvent.
“(2) Qualified farm indebtedness. —For purposes with this subsection, indebtedness of the taxpayer will be addressed as qualified farm indebtedness if—
“(A) such indebtedness ended up being incurred straight associated with the procedure because of the taxpayer associated with trade or business of agriculture, and
“(B) 50 per cent or maybe more of this typical yearly gross receipts regarding the taxpayer for the 3 taxable years preceding the year that is taxable that your release of these indebtedness happens is owing to the trade or business of farming.
“(3) Qualified person. —For purposes for this subsection, the word ‘qualified person’ means an individual described in area 46(c)(8)(D)(iv). ”
1986—Subsec. (a)(1 C that is)(). Pub. L. 99–514, § 822(a), struck out subpar. (C) concerning 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.
Subsec. (b)(2)(B). Pub. L. 99–514, § 231(d)(3)(D), substituted “General business credit” for “Research credit and basic company credit” in heading and amended text, since amended by this Act (Pub. L. 99–514, § 1171(b)(4) (see below)), generally speaking. Just before amendment, text read the following: “Any carryover to or from the taxable 12 months of the release of a sum for purposes of determining the amount allowable as being a credit under—
“(i) part 30 (concerning credit for increasing research tasks), or
“(ii) part 38 (associated with basic company credit).
For purposes for this subparagraph, there shall never be taken into account any part of a carryover which will be owing to the worker stock ownership credit determined under area 41. ”
Pub. L. 99–514, § 1171(b)(4), hit away last phrase which was in fact eradicated by the basic amendment of subpar. (B) by Pub. L. 99–514, § 231(d)(3)(D). See above.
Subsec. (b)(2)(E). Pub. L. 99–514, § 1847(b)(7), substituted “section 27” for “section 33”.
Subsec. (b)(3). Pub. L. 99–514, § 104(b)(2), substituted “33? cents” for “50 cents”.
Subsec. (c). Pub. L. 99–514, § 822(b)(2), struck down subsec. (c) associated with income tax remedy for discharge of qualified company indebtedness.
Subsec. (d). Pub. L. 99–514, § 822(b)(3)(B), struck away mention of subsec. (c) in going.
Subsec. (d)(4). Pub. L. 99–514, § 822(b)(3)(A), struck down par. (4) associated with remedy for indebtedness as qualified company indebtedness.
Subsec. (d)(6), (7)(A). Pub. L. 99–514, § 822(b)(3)(B), struck away mention of subsec. (c) in going and text.
Subsec. (d)(7)(B). Pub. L. 99–514, § 822(b)(3)(C), hit away “The preceding phrase shall maybe perhaps maybe not connect with any release into the level that subsection (a)(1)(C) pertains to such release. ”
Subsec. (d)(9)(A). Pub. L. 99–514, § 822(b)(3)(D), struck down “under paragraph (4) with this or subsection after “An election”.
Subsec. ( e)(7)(A)(ii)(we). Pub. L. 99–514, § 805(c)(2), substituted “subsection (a) or (b) of area 166” for “subsection (a), (b), or (c) of part 166”.
Subsec. ( ag ag e)(7)(B) to (D). Pub. L. 99–514, § 805()( that is c), redesignated subpars. (C) to (E) as (B) to (D), correspondingly, and hit away previous subpar. (B) which linked to taxpayers on reserve technique.
Subsec. ( ag e)(7)(E), (F). Pub. L. 99–514, § 805(c)(3), (4), redesignated subpar. (F) as ( ag E) and substituted “the foregoing subparagraphs” for “subparagraphs (A), (B), (C), (D), and (E)”. Previous subpar. (E) redesignated (D).
Subsec. ( ag ag e)(10)(C). Pub. L. 99–514, § 621(e), repealed the amendment by Pub. L. 98–369, § 59(b)(1), which had added subpar. (C) producing an exclusion for transfers in a few workouts regarding the satisfaction of indebtedness by corporation’s stock. See 1984 Amendment note below.
1984—Subsec. (b)(2)(B). Pub. L. 98–369, § 474(r)(5), substituted provisions concerning research credits and basic company credits addressing carryovers to or through the taxable 12 months of a discharge of a quantity for purposes of determining the amount allowable as a credit under part 30 (associated with credit for increasing research tasks), or area 38 (associated with basic company credit), and directing that there shall never be considered any part of a carryover that is due to the worker stock ownership credit determined under area 41 for previous conditions addressing carryovers to or through the taxable 12 months for the release of a sum for purposes of determining the quantity of a credit allowable under part 38 (associated with investment in a few depreciable property), area 40 (associated with expenses of work motivation programs), area 44B (associated with credit for work of particular brand new workers), area 44E (concerning liquor utilized as a gas), or area 44F (associated with credit for increasing research tasks), and directing that, for purposes of clause (i), there may never be taken into consideration any part of a carryover that has been due to the worker plan credit (inside the meaning of area 48(o)(3)).
Subsec. (d)(6). Pub. L. 98–369, § 721(b)(2), hit down “or S corporation shareholder level” in going and sentence that is second offered that “In the way it is of an S firm, subsections (a), (b), and (c) shall use during the shareholder level.”. See par. (7)(A).
Subsec. (d)(7) to (10). Pub. L. 98–369, § 721(b)(2), included par. (7) and redesignated previous pars. (7) to (9) as (8) to (10), correspondingly.
Subsec. ( ag e)(10)(C). Pub. L. 98–369, § 59(b)(1), which included subpar. (C), effective just as if contained in the amendments created by part 806(e) and (f) of Pub. L. 94–455, ended up being repealed by Pub. L. 99–514, § 621(e), (f)(2), eff. Jan. 1, 1986, with specific exceptions, see Effective Date of 1986 note that is amendment.
1982—Subsec. (d)(6). Pub. L. 97–354 inserted “or S corporation shareholder level” in going and inserted “in case of an S company, subsections (a), (b), and c that is( will be used during the shareholder degree. ”
1980—Pub. L. 96–589 totally expanded and revised conditions by indicating the kinds of indebtedness and also by aiming priorities one of the exclusions, to mirror the modification of Title 11, Bankruptcy, in 1978.
1976—Pub. L. 94–455, § 1951(b)(2)(A), hit out “(a) Unique guideline of exclusion. —” after “Income from release of indebtedness” and struck down subsec. (b) which linked to discharge, termination, or modification of indebtedness of specific railroad corporations.
1960—Subsec. (b). Pub. L. 86–496 prov Jan. 1, 1960, then no quantity is usually to be contained in revenues with regards to it, and struck down conditions which made subsection inapplicable to discharges occurring in a year that is taxable after Dec. 31, 1957.
1956—Subsec. (b). Act 29, 1956, substituted “ December 31, 1957 ” for “ December 31, 1955 ” june.