Public Law 98–4

a qualified taxpayer shall not be treated as having realized income when he receives a commodity under a 1983 payment-in-kind program,

such commodity shall be treated as if it were produced by such taxpayer, and

the unadjusted basis of such commodity in the hands of such taxpayer shall be zero.

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

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.

section 2032A of the Internal Revenue Code of 1954 (relating

26 USC 2032A.

to valuation of certain farm, etc., real property),

section 6166 of such Code (relating to extension of time for

26 USC 6166.

payment of estate tax where estate consists largely of interest in closely held business),

chapter 2 of such Code (relating to tax on self-employment

26 USC 1401 et seq.

income), and

title II of the Social Security Act (relating to Federal old-age,

42 USC 401.

survivors, and disability insurance benefits).

by reason of the death of a qualified transferor,

by reason of a gift from a qualified transferor, or

from a qualified transferor who is a member of the family of the person acquiring the land.

Qualified transferor.—

The term “qualified transferor” means any person—

Member of family.—

The term “member of the family” has the meaning given such term by section 2032A(e)(2) of the Internal Revenue Code of 1954.

26 USC 2032A.

Mere change in form of business.—

Subsection (a) shall not apply to any change in ownership by reason of a mere change in the form of conducting the trade or business so long as the land is retained in such trade or business and the person holding the land before such change retains a direct or indirect 80-percent interest in such land.

Treatment of certain acquisitions of right to the crop.—

The acquisition of a direct or indirect interest in 80 percent or more of the crop from any land shall be treated as an acquisition of such land.

1983 payment-in-kind program.—

The term “1983 payment-in-kind program” means any program for the 1983 crop year—

1983 crop year.—

The term “1983 crop year” means the crop year for any crop the harvesting or planting period for which occurs during 1983.

Qualified taxpayer.—

The term “qualified taxpayer” means any producer of agricultural commodities (within the meaning of the 1983 payment-in-kind programs) who receives any agricultural commodity in return for meeting the requirements of clauses (i) and (ii) of paragraph (1)(A).

Receipt includes right to receive, etc.—

A right to receive (or other constructive receipt of) a commodity shall be treated the same as actual receipt of such commodity.

Amounts received by the taxpayer as reimbursement for storage.—

A qualified taxpayer reporting on the cash receipts and disbursements method of accounting shall not be treated as being entitled to receive any amount as reimbursement for storage of commodities received under a 1983 payment-in-kind program until such amount is actually received by the taxpayer.

Commodity credit loans treated separately.—

Subsection (a) of section 2 shall apply to the receipt of any commodity under a 1983 payment-in-kind program separately from, and without taking into account, any related transaction or series of transactions involving the satisfaction of loans from the Commodity Credit Corporation.

the 1983 payment-in-kind program, and

the tax treatment provided with respect to such program by this Act.