[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 368 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 368

To amend the Internal Revenue Code of 1986 to provide that installment 
   sales of certain farmers not be treated as a preference item for 
                purposes of the alternative minimum tax.


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                   IN THE SENATE OF THE UNITED STATES

             February 7 (legislative day, January 30), 1995

  Mr. Dorgan introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide that installment 
   sales of certain farmers not be treated as a preference item for 
                purposes of the alternative minimum tax.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MINIMUM TAX NOT TO APPLY TO FARMERS' INSTALLMENT SALES.

    (a) In General.--The last sentence of paragraph (6) of section 
56(a) of the Internal Revenue Code of 1986 (relating to treatment of 
installment sales in computing alternative minimum taxable income) is 
amended to read as follows: ``This paragraph shall not apply to any 
disposition described in section 453(l)(2)(A) (relating to farm 
property) or with respect to which an election is in effect under 
section 453(l)(2)(B) (relating to timeshares and residential lots).''
    (b) Effective Dates.--
            (1) In general.--The amendment made by this section shall 
        apply to taxable years beginning after December 31, 1987.
            (2) Special rule for 1987.--In the case of taxable years 
        beginning in 1987, the last sentence of section 56(a)(6) of the 
        Internal Revenue Code of 1986 shall be applied by inserting 
        ``described in section 453(l)(2)(A) or'' after ``disposition''.
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