[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 396 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 396

    To amend the Internal Revenue Code of 1986 to provide that the 
 alternative minimum tax shall not apply to installment sales of farm 
                               property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 9, 1997

   Mr. Barrett of Nebraska introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide that the 
 alternative minimum tax shall not apply to installment sales of farm 
                               property.

    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--
                    ``(A) in the case of a taxpayer using the cash 
                receipts and disbursements method of accounting, 
                described in section 453(l)(2)(A) (relating to farm 
                property), or
                    ``(B) 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 (as in effect for such taxable 
        years) shall be applied by inserting ``or in the case of a 
        taxpayer using the cash receipts and disbursements method of 
        accounting, any disposition described in section 453(l)(2)(A)'' 
        after ``section 453C(e)(4)''.
            (3) Waiver of statute of limitations.--If refund or credit 
        of any overpayment of tax resulting from the amendment made by 
        subsection (a) is prevented at any time before the close of the 
        1-year period beginning on the date of the enactment of this 
        Act by the operation of any law or rule of law (including res 
        judicata), refund or credit of such overpayment (to the extent 
        attributable to such amendment) may, nevertheless, be made or 
        allowed if claim therefore is filed before the close of such 1-
        year period.
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