§1252 — Gain from disposition of farm land
32 cases·3 followed·3 distinguished·1 questioned·11 overruled·14 cited—9% support
Statute Text — 26 U.S.C. §1252
Except as otherwise provided in this section, if farm land which the taxpayer has held for less than 10 years is disposed of, the lower of—
the applicable percentage of the aggregate of the deductions allowed under section 175 (relating to soil and water conservation expenditures) for expenditures made by the taxpayer with respect to the farm land or
the excess of—
the amount realized (in the case of a sale, exchange, or involuntary conversion), or the fair market value of the farm land (in the case of any other disposition), over
the adjusted basis of such land,
shall be treated as ordinary income. Such gain shall be recognized notwithstanding any other provision of this subtitle.
For purposes of this section, the term “farm land” means any land with respect to which deductions have been allowed under section 175 (relating to soil and water conservation expenditures).
For purposes of this section—
| If the farm land is disposed of— | The applicablepercentage is— |
|---|---|
| Within 5 years after the date it was acquired | 100 percent. |
| Within the sixth year after it was acquired | 80 percent. |
| Within the seventh year after it was acquired | 60 percent. |
| Within the eighth year after it was acquired | 40 percent. |
| Within the ninth year after it was acquired | 20 percent. |
| 10 years or more years after it was acquired | 0 percent. |
Under regulations prescribed by the Secretary, rules similar to the rules of section 1245 shall be applied for purposes of this section.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.1252-1 General rule for treatment of gain from disposition of farm land
- Treas. Reg. §Treas. Reg. §1.1252-1(a) §1.1252-1(a)
- Treas. Reg. §Treas. Reg. §1.1252-1(b) Instances of non-application—(1) In general.
- Treas. Reg. §Treas. Reg. §1.1252-1(c) Treatment of partnerships and partners.
- Treas. Reg. §Treas. Reg. §1.1252-1(d) Relation of section 1252 to other provisions—(1) General.
- Treas. Reg. §Treas. Reg. §1.1252-1(e) Examples.
- Treas. Reg. §Treas. Reg. §1.1252-1(i) The term farm land means any land with respect to which deductions have been allowed under section 175 or 182.
- Treas. Reg. §Treas. Reg. §1.1252-2 Special rules
- Treas. Reg. §Treas. Reg. §1.1252-2(a) Exception for gifts—(1) General rule.
- Treas. Reg. §Treas. Reg. §1.1252-2(b) Exception for transfers at death—(1) In general.
- Treas. Reg. §Treas. Reg. §1.1252-2(c) Limitation for certain tax-free transactions—(1) Limitation on amount of gain.
- Treas. Reg. §Treas. Reg. §1.1252-2(d) Limitation for like kind exchanges and involuntary conversions—(1) General rule.
- Treas. Reg. §Treas. Reg. §1.1252-2(e) Partnerships.
- Treas. Reg. §Treas. Reg. §1.1252-2(f) Treatment of farm land received by a transferee in a disposition by gift and certain tax-free transactions—(1) General rule.
- Treas. Reg. §Treas. Reg. §1.1252-2(g) Disposition of farm land not specifically covered.
- Treas. Reg. §Treas. Reg. §1.1252-2(i) §1.1252-2(i)
- Treas. Reg. §Treas. Reg. §1.1252-2(v) Section 374(a) (relating to exchanges pursuant to certain railroad reorganizations).
32 Citing Cases
t corporation, duly established under the laws ofLouisiana, operated exclusively for charitable, educational, and historical purposes in order to facilitate public participation in the preservation ofsites, buildings, and objects significant in the history and culture ofthe City ofNew Orleans, and in furtherance ofsuch purposes is authorized under Section 1252 of Title 9 ofthe Louisiana Revised Statutes (R.S.
poration, duly established under the laws of Louisiana, operated exclusively for charitable, educational, and historical purposes in order to facilitate public participation in the preservation of sites, buildings, and objects significant in the history and culture of the City of New Orleans, and in furtherance of such purposes is authorized under Section 1252 of Title 9 of the Louisiana Revised Statutes (R.S.
poration, duly established under the laws of Louisiana, operated exclusively for charitable, educational, and historical purposes in order to facilitate public participation in the preservation of sites, buildings, and objects significant in the history and culture of the City of New Orleans, and in furtherance of such purposes is authorized under Section 1252 of Title 9 of the Louisiana Revised Statutes (:R.S.
poration, duly established under the laws of Louisiana, operated exclusively for charitable, educational, and historical purposes in order to facilitate public participation in the preservation of sites, buildings, and objects significant in the history and culture of the City of New Orleans, and in furtherance of such purposes is authorized under Section 1252 of Title 9 of the Louisiana Revised Statutes (R.S.