Page:United States Statutes at Large Volume 122.djvu/2310

 12 2 STA T . 22 87PUBLIC LA W 11 0– 2 46—J U NE 18, 2008 inaf a rm in gbus in e ss w i th res p e c tt o an y agricu l tural or horticultural commo d ity —‘ ‘ (I) the term ‘farming business ’ shall include any trade or business of the ta x payer of the proc - essing of such commodity (without regard to whether the processing is incidental to the growing, raising, or har v esting of such commodity), and ‘‘(II) if the taxpayer is a member of a coopera- tive to which subchapter T applies, any trade or business of the cooperative described in subclause (I) shall be treated as the trade or business of the taxpayer . ‘‘( D ) CERTAINLOS SES D ISRE G ARDED.— F or purposes of subparagraph ( A )(i), there shall not be ta k en into account any deduction for any loss arising by reason of fire, storm, or other casualty, or by reason of disease or drought, involving any farming business. ‘‘( 5 )A P PLI C ATION O F S UB SECTION IN CASE OF PARTNERS H IPS AND S CORPORATIONS.—In the case of a partnership or S cor- poration— ‘‘(A) this subsection shall be applied at the partner or shareholder level, and ‘‘( B ) each partner’s or shareholder’s proportionate share of the items of income, gain, or deduction of the partnership or S corporation for any taxable year from farming businesses attributable to the partnership or S corporation, and of any applicable subsidies received by the partnership or S corporation during the taxable year, shall be taken into account by the partner or shareholder in applying this subsection to the taxable year of such partner or shareholder with or within which the taxable year of the partnership or S corporation ends. The Secretary may provide rules for the application of this paragraph to any other pass-thru entity to the extent necessary to carry out the provisions of this subsection. ‘‘( 6 ) ADDITIONAL REPORTING.—The Secretary may prescribe such additional reporting re q uirements as the Secretary deter- mines appropriate to carry out the purposes of this subsection. ‘‘( 7 ) COORDINATION W ITH SECTION 469 .—This subsection shall be applied before the application of section 4 6 9 .’’. (b) E FFECTI V E DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 20 09. SEC.153 5 2 . MODIF IC AT IO N TOO P TIONA L MET H OD OF COMP U TIN G NET EA R NINGS FROM SELF - EMPLO Y MENT. (a) A M ENDMENTS TO THE INTERNAL R EVENUE CODE OF 19 8 6.— (1) IN GENERAL.—The matter following paragraph (17) of section 1402(a) is amended— (A) by striking ‘‘ $ 2,400’’ each place it appears and inserting ‘‘the upper limit’’, and (B) by striking ‘‘$1,600’’ each place it appears and inserting ‘‘the lower limit’’. (2) DEFINITIONS.—Section 1402 is amended by adding at the end the following new subsection

‘‘(l) U PPER AND L OWER LIMITS.—For purposes of subsection (a)— 26USC140 2 . 26 USC 461 note . Ap p licab ilit y .

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