12 2 STA T . 1 0 12 PUBLIC LA W 110 – 2 34—M A Y 22 , 200 8(6)Section291 (2) o f t h e Trad e A ctof19 74 (19 U. S. C . 24 0 1(2)) i s a m ended by insertin g‘ ‘(before the amendment made by section 170 3 (a) of the F ood , Conser v ation, and E nergy Act of 200 8 ) ’ ’ before the p eriod at the end. (h) T RANSIT I O N. — Section 1001, 1001A, and 1001 B of the Food Sec u rity Act of 198 5 (7 U.S.C. 1308, 1308 – 1, 1308–2), as in effect on September 30, 2007, sha l l continue to apply w ith respect to the 2007 and 2008 crops of any covered commodity or peanuts. SEC.1604 . ADJU S T ED GRO SS IN CO M E L IMITATION. (a) I N GE NERA L .—Section 1001 D of the Food Security Act of 1985 (7 U.S.C. 1308–3a(e)) is amended to read as follows
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‘SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION. ‘‘(a) DE F INITIONS.— ‘‘(1) IN G ENERAL.—In this section: ‘‘(A) A V ERAGE A DJU STED GROSS IN C O M E.—The term ‘average ad j usted gross income’, with respect to a person or legal entity, means the average of the adjusted gross income or comparable measure of the person or legal entity over the 3 ta x able years preceding the most immediately preceding complete taxable year, as determined by the Secretary. ‘‘(B) AVERAGE ADJUSTED GROSS FARM INCOME.—The term ‘average adjusted gross farm income’, with respect to a person or legal entity, means the average of the portion of adjusted gross income of the person or legal entity that is attributable to activities related to farming, ranching, or forestry for the 3 taxable years described in subparagraph (A), as determined by the Secretary in accordance with subsection (c). ‘‘(C) AVERAGE ADJUSTED GROSS NONFARM INCOME.— The term ‘average adjusted gross nonfarm income’, with respect to a person or legal entity, means the difference between— ‘‘(i) the average adjusted gross income of the person or legal entity
and ‘‘(ii) the average adjusted gross farm income of the person or legal entity. ‘‘(2) S P ECIAL RULES FOR CERTAIN PERSONS AND LEGAL ENTI - TIES.—In the case of a legal entity that is not re q uired to file a Federal income tax return or a person or legal entity that did not have taxable income in 1 or more of the taxable years used to determine the average under subparagraph (A) or (B) of paragraph (1), the Secretary shall provide, by regula- tion, a method for determining the average adjusted gross income, the average adjusted gross farm income, and the aver- age adjusted gross nonfarm income of the person or legal entity for purposes of this section. ‘‘(3) ALLOCATION OF INCOME.— O n the request of any person filing a joint tax return, the Secretary shall provide for the allocation of average adjusted gross income, average adjusted gross farm income, and average adjusted gross nonfarm income among the persons filing the return if— ‘‘(A) the person provides a certified statement by a certified public accountant or attorney that specifies the method by which the average adjusted gross income, aver- age adjusted gross farm income, and average adjusted gross Ap p licab ili ty.7USC1308no t e .
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