“(1) as a whole. —For purposes with this area and area 1017, the release by a professional individual of qualified farm indebtedness of a taxpayer who’s perhaps maybe not insolvent at the money key time of the release will be addressed when you look at the manner that is same in the event that release had taken place as soon as the taxpayer had been insolvent.
“(2) Qualified farm indebtedness. —For purposes of the subsection, indebtedness of the taxpayer will be addressed as qualified farm indebtedness if—
“(A) such indebtedness had been incurred straight associated with the procedure by the taxpayer associated with trade or company of agriculture, and
“(B) 50 per cent or higher regarding the normal yearly gross receipts associated with the taxpayer when it comes to 3 taxable years preceding the taxable 12 months in that your release of these indebtedness happens is owing to the trade or company of agriculture.
“(3) Qualified person. —For purposes with this subsection, the expression ‘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 down 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. Continue reading Subsec. (g). Pub. L. 100–647, § 1004(a)(4), substituted “indebtedness” for “indebtedness of solvent farmers” in going and amended text generally speaking. Just before amendment, text read the following: