Page:United States Statutes at Large Volume 76.djvu/1111

 76 STAT.]

PUBLIC LAW 87-834-OCT. 16, 1962

1063

(d) TECHNICAL AMENDMENTS,—

(1) Section 318(b) (relating to cross references) is amended by striking out "and" at the end of paragraph (5), by striking out the period at the end of paragraph (6) and inserting in lieu thereof "; and", and by adding at the end thereof the following: "(7) section 6038(d)(1) (relating' to information with respect to certain foreign corporations)." (2) The table of sections for subpart B of part III of subchapter A of chapter 61 is amended by striking out "Sec. 6046. Returns as to creation or organization, or reorganization, of foreign corporations," and inserting in lieu thereof "Sec. 6046. Returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock." (3) The table of sections for subchapter B of chapter 68 is amended by adding at the end thereof the following: "Sec. 6679. Failure to file returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock." (e)

26 USC 3is.

EFFECTIVE DATE,—

(1) The amendments made by subsection (a) shall apply with respect to annual accounting periods of foreign corporations beginning after December 31, 1962. (2) The amendments made by subsection (b) shall take effect on January 1, 1963.

SEC. 21. EXPENDITURES BY FARMERS FOR CLEARING LAND. (a) ALLOWANCE OF DEDUCTION,—Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by adding after section 181 (as added by section 2(c) of this Act) the following new section:

"SEC. 182. EXPENDITURES BY FARMERS FOR CLEARING LAND. " (a) IN GENERAL.—A taxpayer engaged in the business of farming may elect to treat expenditures which are paid or incurred by him during the taxable year in the clearing of land for the purpose of making such land suitable for use in farming as expenses which are not chargeable to capital account. The expenditures so treated shall be allowed as a deduction. " (b) LIMITATION.—The amount deductible under subsection (a) for any taxable year shall not exceed whichever of the following amounts is the lesser: "(1) $5,000, or "(2) 25 percent of the taxable income derived from farming during the taxable year. For purposes of paragraph (2), the term 'taxable income derived from farming' means the gross income derived from farming reduced by the deductions allowed by this chapter (other than by this section) which are attributable to the business of farming. "(c) DEFINITIONS.—For purposes of subsection (a)— "(1) The term 'clearing of land' includes (but is not limited to) the eradication of trees, stumps, and brush, the treatment or moving of earth, and the diversion of streams and watercourses. "(2) The term 'land suitable for use in farming' means land which as a result of the activities described in paragraph (1) is suitable for use by the taxpayer or his tenant for the production of crops, fruits, or other agricultural products or for the sustenance of livestock.

Ante, p. 9171.

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