Page:United States Statutes at Large Volume 68A.djvu/108

 68

INTERNAL REVENUE CODE OF 1954

tion in respect of land used in farming, or for the prevention of erosion of land used in farming" means expenditures paid or inciu-red for the treatment or moving of earth, including (but not limited to) leveling, grading and terracing, contour furrowing, the construction, control, and protection of diversion channels, drainage ditches, earthen dams, watercourses, outlets, and ponds, the eradication of brush, and the planting of windbreaks. Such term does not include— (A) the purchase, construction, installation, or improvement of structures, appliances, or facilities which are of a character which is subject to the allowance for depreciation provided in section 167, or (B) any amount paid or incurred which is allowable as a deduction without regard to this section. Notwithstanding the preceding sentences, such term also includes any amount, not otherwise allowable as a deduction, paid or incurred to satisfy any part of an assessment levied by a soil or water conservation or drainage district to defray expenditures made by such district which, if paid or incurred by the taxpayer, would without regard to this sentence constitute expenditures deductible under this section. (2) The term ''land used in farming" means land used (before or simultaneously with the expenditures described in paragraph (1)) by the taxpayer or his tenant for the production of crops, fruits, or other agricultural products or for the sustenance of Hvestock. (d) W H E N M E T H O D M A Y B E A D O P T E D. — (1) WITHOUT CONSENT.—A taxpayer may, without the consent

of the Secretary or his delegate, adopt the method provided in this section for his first taxable year— (A) which begins after December 31, 1953, and ends after the date on which this title is enacted, and (B) for which expenditures described in subsection (a) are paid or incurred. (2) W I T H CONSENT.—A taxpayer may, with the consent of the Secretary or his delegate, adopt a t any time the method provided in this section. (e) SCOPE.—The method adopted under this section shall apply to all expenditures described in subsection (a). The method adopted shall be adhered to in computing taxable income for the taxable year and for all subsequent taxable years unless, with the approval of the Secretary or his delegate, a change to a different method is authorized with respect to part or all of such expenditures.

§ 175(c)(1)

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