Page:United States Statutes at Large Volume 83.djvu/601

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

573

" (B) the excess of— " (i) the amount realized (in the case of a sale, exchange, or involuntary conversion), or the fair market value of the farm land (in the case of any other disposition), over " (ii) the adjusted basis of such land, shall be treated as gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231. Such gain shall be recognized notwithstanding anv other provision of this subtitle, except that this section shall not apply to the extent section 1251 applies to such gain. "(2) FARMLAND.—For purposes of this section, the term ' f a r m land' means any land with respect to which deductions have been allowed under sections 175 (relating to soil and water conservation expenditures) or 182 (relating to expenditures by farmers for clearing land). "(3) APPLICABLE PERCENTAGE.—For purposes of this section— "If the farm land is disposed of—

^

^^A Stat. 325. ^^ ^^^ ^^^^' ^"'e, p. see.

'^ ^*^*- ^o^^.

The applicable percentage is—

Within 5 years after the date it was acquired 100 percent. Within the sixth year after it was acquired 80 percent. Within the seventh year after it was acquired 60 percent. Within the eighth year after it was acquired 40 percent. Within the ninth year after it was acquired 20 percent. 10 years or more years after it was acquired 0 percent. "(b) SPECIAL RULES.—Under regulations prescribed by the Secretary or his delegate, rules similar to the rules of section 1245 shall be applied for purposes of this section." (b) CLERICAL AMENDMENT.—The table of sections for part IV of subchapter P of chapter 1 is amended by adding at the end thereof the following:

Ante, p. 5 7 1.

"Sec. 1252. Gain from the disposition of farm land."

(c) EEFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1969. SEC. 215. CROP INSURANCE PROCEEDS. (a) YEAR I N W H I C H INCLUDED I N INCOME.—Section 451 (relating 79^|fat?382^^^'

to general rule for taxable year of inclusion) is amended by adding at the end thereof the following new subsection: "(d) SPECIAL RULE FOR CROP INSURANCE PROCEEDS,—In the case of insurance proceeds received as a result of destruction or damage to crops, a taxpayer reporting on the cash receipts and disbursements method of accounting may elect to include such proceeds in income for the taxable year following the taxable year of destruction or damage, if he establishes that, under his practice, income from such crops would have been reported in a following taxable year. An election under this subsection for any taxable year shall be made at such time and in such manner as the Secretary or his delegate prescribes." (b) EEFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years ending after the date of the enactment of this Act. SEC. 216. CAPITALIZATION OF COSTS OF PLANTING AND DEVELOPING CITRUS GROVES. (a) REQUIREMENT OF CAPITALIZATION.—Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding after section 277 (added by section 121(b)(3) of this Act) the following new section:

^^e. p. 540.

�