PUBLIC LAW 98-4 —MAR. 11, 1983 97 STAT. 7 Public Law 98-4 98th Congress An Act Relating to the treatment for income and estate tax purposes of commodities received under 1983 payment-in-kind programs, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the "Payment-in-Kind Tax Treatment Act of 1983". SEC. 2. INCOME TAX TREATMENT OF AGRICULTURAL COMMODITIES RECEIVED UNDER A 1983 PAYMENT-IN-KIND PROGRAM. (a) INCOME TAX DEFERRAL, ETC. — Except as otherwise provided in this Act, for purposes of the Internal Revenue Code of 1954— (1) a qualified taxpayer shall not be treated as having realized income when he receives a commodity under a 1983 payment-in- kind program, (2) such commodity shall be treated as if it were produced by such taxpayer, and (3) the unadjusted basis of such commodity in the hands of such taxpayer shall be zero. (b) EFFECTIVE DATE. —This section shall apply to taxable years ending after December 31, 1982, but only with respect to commod- ities received for the 1983 crop year. SEC. 3. LAND DIVERTED UNDER 1983 PAYMENT-IN-KIND PROGRAM TREATED AS USED IN FARMING BUSINESS, ETC. (a) GENERAL RULE.—For purposes of the provisions specified in subsection (b), in the case of any land diverted from the production of an agricultural commodity under a 1983 payment-in-kind program— (1) such land shall be treated as used during the 1983 crop year by the qualified taxpayer in the active conduct of the trade or business of farming, and (2) any qualified taxpayer who materially participates in the diversion and devotion to conservation uses required under a 1983 payment-in-kind program shall be treated as materially participating in the operation of such land during such crop year. (b) PROVISIONS TO WHICH SUBSECTION (a) APPLIES.—The provisions specified in this subsection are— (1) section 2032A of the Internal Revenue Code of 1954 (relat- ing to valuation of certain farm, etc., real property), (2) section 6166 of such Code (relating to extension of time for pa3anent of estate tax where estate consists largely of interest in closely held business), (3) chapter 2 of such Code (relating to tax on self-employment income), and Mar. 11, 1983 [H.R. 1296] Payment-in-Kind Tax Treatment Act of 1983. 26 USC 61 note. 26 USC 61 note. 26 USC 1 et seq. 26 USC 61 note. 26 USC 2032A. 26 USC 6166. 26 USC 1401 et seq.
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