§1301 — Averaging of farm income

53 cases·7 followed·3 distinguished·3 overruled·40 cited—13% support

Statute Text — 26 U.S.C. §1301

(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.

Treasury Regulations

Treas. Reg. §Treas. Reg. §1.1301-1 Averaging of farm and fishing income
Treas. Reg. §Treas. Reg. §1.1301-1(a) Overview.
Treas. Reg. §Treas. Reg. §1.1301-1(b) Individual engaged in a farming or fishing business—(1) In general—(i) Farming or fishing business.
Treas. Reg. §Treas. Reg. §1.1301-1(c) Making, changing, or revoking an election—(1) In general.
Treas. Reg. §Treas. Reg. §1.1301-1(d) Guidelines for calculation of section 1 tax—(1) Actual taxable income not affected.
Treas. Reg. §Treas. Reg. §1.1301-1(e) Electible farm income—(1) Identification of items attributable to a farming or fishing business—(i) In general.
Treas. Reg. §Treas. Reg. §1.1301-1(f) Miscellaneous rules—(1) Short taxable year—(i) In general.
Treas. Reg. §Treas. Reg. §1.1301-1(g) Effective/applicability date.
Treas. Reg. §Treas. Reg. §1.1301-1(i) Any reduction or increase in taxable income required for purposes of the computation under paragraph (a)(2) of this section is disregarded in determining the taxable year in which a net operating loss carryover or net capital loss carryover is applied.
Treas. Reg. §Treas. Reg. §1.1301-1(v) If a base year had a partially used credit, the remaining credit may not be applied to reduce the section 1 tax attributable to the elected farm income allocated to the year for purposes of the computation under paragraph (a)(2) of this section.

53 Citing Cases

DIST. Estate of Clifford C. Haugen, Deceased and Audrey A. Haugen, Petitioners · 2004

881 (enacting section 1301), the conferees stated: "the provision [sec. 1301] does not apply for purposes of the alternative minimum tax under section 55." H.

Charlton C. Tooke, III, Petitioner 164 T.C. No. 2 · 2025

1057, 1141, the Advisory Tax Board was the first iteration of the office that we now know as Appeals. All decisions of the Advisory Tax Board 5 We will refer to the hearing we held, see Doc. 33, as the “oral argument” to avoid any confusion with the administrative hearing conducted by Appeals. 8 were subject to review by the Co

Conmac Investments Inc., Petitioner T.C. Memo. 2023-40 · 2023

e 2008 Act. 122 Stat. at 936 (citation omitted) (codified as amended at 7 U.S.C. § 8702). Excluded are base acres for peanuts, which are defined in a different but corresponding section of the Farm Security and Rural Investment Act of 2002. 2008 Act § 1301, 122 Stat. at 966–67 (codified as amended at 7 U.S.C. § 8751). 5 Pub. L. No. 112-240, 126 Stat. 2313 (2013). 6 Agricultural Act of 2014, Pub. L. No. 113-79, 128 Stat. 649. Section 1111(4) of that act carries forward the 2008 definitions of bas

Steven A. McGuire & Robin L. McGuire, Petitioners · 2017

at 162 (codified at 42 U.S.C. sec. 18021 (Supp. V 2006)). In the case ofa qualified individual health plan, the plan must be made available for purchase on an exchange, must meet minimum coverage requirements, and must be offered by an insurer who is licensed in the State where the plan is offered and is in good standing to off

Christopher Holden & Karen A. Holden, Petitioners · 2015

1301.11 (2009), and we conclude that the second October 29 expense served this purpose. Hence, the expenses underlying the September 28 and October 29 disputed dues were ordinary and necessary business expenses deductible under section 162(a). - 48 - [*48] We find that CHMD was entitled to deduct $4,551 ofthe disputed dues; otherwise, we sust

Technicolor Holdings, Inc., as Successor in Interest to New CCI, Inc., and Subsidiaries, Petitioner T.C. Memo. 2005-254 · 2005

1301(3) and (4) (2005) (a creditor is defined as a person who has a right to payment). Respondent cites section 1.482-1(d)(3)(ii)(B) and (f)(2)(ii), Income Tax Regs., as authority for restructuring the transfer between CIC and CIHI as a new loan between Holdings and CIHI. Section 1.482-1(d)(3)(ii)(B), Income Tax Regs., states: The contractual

Gregory Drake, Petitioner 125 T.C. No. 9 · 2005

1301 precluded any collection action against either Barbara Drake or petitioner. On October 27, 2003, Appeals Officer Kaplan requested legal advice from Attorney Forbes concerning the preclusion of any collection action against petitioner. Attorney Forbes advised that 11 U.S.C. sec. 1301 did not preclude the collection action against petitione

Technicolor Holdings, Inc., as Successor in Interest to New CCI, Inc., and Subsidiaries, Petitioner T.C. Memo. 2005-254 · 2005

Kimberly A. Pilgram, a.k.a. Kimberly A. Coffiey, Petitioners · 2001

Pilgram for 1998.4 Petitioner, however, appears to rely on section 7703(b).5 That section provides that certain married individuals who live apart will not be considered as married.

Phuong K. Nguyen, Petitioner T.C. Memo. 2001-41 · 2001

dvised the Court that their negotiations in this regard had not been successful. Discussion We apply section 7430 as most recently amended by Congress in the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 1301, 112 Stat. 685, 727. However, certain of the amendments made by RRA 1998 to section 7430 (regarding the reasonableness of costs, the type of recoverable costs, and other provisions that are not in issue herein) apply only to costs incurred a

Wells Fargo and Company, and Subsidiaries, Successor in Interest to Intrawest Financial Corporation and Subsidiaries; f.k.a. Norwest Corporation and Subsidiaries, Successor in Interest to Intrawest Financial Corporation and Subsidiaries, Petitioners 111 T.C. No. 5 · 1998

However, section 1301 allows a taxpayer to reduce the tax on averageable income thereunder.

Wells Fargo and Company, and Subsidiaries; Successor in Interest to United Banks of Colorado, Inc., and Subsidiaries, f.k.a. Norwest Corporation and Subsidiaries, Successor in Interest to United Banks of Colorado, Inc., and Subsidiaries, Petitioners 111 T.C. No. 5 · 1998

However, section 1301 allows a taxpayer to reduce the tax on averageable income thereunder.

Wells Fargo and Company, Successor in Interest to United Banks of Colorado, Inc., and Subsidiaries; f.k.a. Norwest Corporation, Successor in Interest toUnited Banks of Colorado, Inc., and Subsidiaries, Petitioners 111 T.C. No. 5 · 1998

However, section 1301 allows a taxpayer to reduce the tax on averageable income thereunder.

Harbor Bancorp & Subsidiaries, Petitioner 105 T.C. No. 19 · 1995

nal Revenue Code of 1986.2 Some of the facts have been stipulated and are found accordingly. The stipulations of fact and attached exhibits are 1We apply sec. 103 of the 1954 Code as in effect for Feb. 20, 1986, instead of the 1986 Code, because (1) sec. 1301 of the Tax Reform Act of 1986 (TRA), Pub. L. 99-514, 100 Stat. 2085, 2602, which amended sec. 103, became effective for bonds issued after Aug. 15, 1986, TRA sec. 1311(a), 100 Stat. 2659, and (2) the bonds we deal with were issued before th

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