,i #aai? ,,congress #a/ ,session ,h4 ,r4 #fhcf ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,decemb] #ah1 #bjbe,mr4 ,al=d introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to exclude f gross income c]ta9 ga9s & o!r income relat$ to use ( f>ml& by beg9n+ f>m]s4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,beg9n+ ,f>m] ,tax ,inc5tive ,act4 #b4 ,c]ta9 ga9s & o!r income relat$ to use ( f>ml& by beg9n+ f>m]s exclud$ f gross income 7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #aci,l ! foll[+ new section3 #aci,m4 ,c]ta9 ga9s & o!r income relat$ to use ( f>ml& by beg9n+ f>m]s 7a7 ,capital ga9s 7#a7 ,9 g5]al ,gross income %all n include #dj p]c5t ( ! ga9 f ! sale or ex*ange ( qualify+ f>ml& held = m ?an #a ye> if su* f>ml& is transf]r$ to a beg9n+ f>m] 9 su* sale or ex*ange4 7#b7 ,limitation ,! aggregate am\nt ( ga9 exclud$ "u p>agraph 7#a7 ) respect to any taxpay] = any taxable ye> %all n exce$ ! excess 7if any7 (-- 7,a7 #a1ejj1jjj1 ov] 7,b7 ! aggregate am\nt ( ga9 exclud$ "u p>agraph 7#a7 ) respect to su* taxpay] = ! #d prec$+ taxable ye>s4 7b7 ,application to leases & crop-,%>e arrangem5ts 7#a7 ,9 g5]al ,gross income %all n include income f ! lease or r5tal ( qualify+ f>ml& to a beg9n+ f>m] if ! t]m ( su* lease or r5tal agreem5t is = a p]iod n exce$+ #aj ye>s4 7#b7 ,limitation ,! am\nt exclud$ "u p>agraph 7#a7 by any taxpay] = any taxable ye> %all n exce$ #be1jjj4 7c7 ,qualify+ f>ml& 7#a7 ,9 g5]al ,! t]m qualify+ f>ml& means prop]ty-- 7,a7 us$ z a f>m = f>m+ purposes 7)9 ! mean+ ( section #bjcb;,a7b77#b77;,a771 & 7,b7 ) respect to :i*1 dur+ ! #h-ye> p]iod end+ on ! date ( ! sale or ex*ange describ$ 9 subsection 7a77#a7 7or1 = purposes ( subsection 7b77#a71 ! date ( ! lease or r5tal71 !re h be5 p]iods aggregat+ #e ye>s or m dur+ :i*-- 7i7 su* real prop]ty 0 own$ by ! taxpay]1 a memb] ( ! taxpay]'s family1 or ! taxpay]'s revocable grantor tru/1 & us$ 9 ! op]ation ( a f>m1 & 7ii7 !re 0 mat]ial p>ticipation by ! taxpay] or a memb] ( ! taxpay]'s family 9 ! op]ation ( ! f>m4 7#b7 ,memb] ( ! family ,= purposes ( ?is subsection1 ! t]m memb] ( ! family has ! same mean+ giv5 su* t]m 9 section #dji7p77#d77;,d74 7#c7 ,special rules ,= purposes ( p>agraph 7#a77;,b7-- 7,a7 ,taxpay]s :o are retir$ or disabl$ ,rules simil> to ! rules ( subp>agraphs 7,a7 & 7,b7 ( section #bjcb;,a7b77#d7 %all apply4 7,b7 ,surviv+ sp\ses ,rules simil> to ! rules ( section #bjcb;,a7b77#e7 %all apply4 7d7 ,beg9n+ f>m] ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m beg9n+ f>m] means any individual :o-- 7,a7 is a citiz5 ( ! ,unit$ ,/ates1 & 7,b7 is c]tifi$ by ! ,secret>y ( ,agriculture 7! ,secret>y1 9 ! case ( clause 7i77 to satisfy "o ( ! foll[+ requirem5ts3 7i7 ,)\t reg>d to any taxable ye> beg9n+ be=e su* individual atta9$ age #ah1 su* individual _h income or loss prop]ly report$ on ,s*$ule ,f = n less ?an #a & n m ?an #aj taxable ye>s4 7ii7 ,su* individual is approv$ = a beg9n] f>m] loan ?r\gh ! ,f>m ,s]vice ,ag5cy ,beg9n+ ,f>m] direct or gu>ante$ loan program4 7iii7 ,su* individual has sub/antial f>m+ k & is ! pr9cipal op]ator ( a f>m t con/itutes new production agriculture4 7iv7 ,su* individual is relat$ )9 ! f\r? degree by blood1 m>riage1 or adoption to ! taxpay] f :om ! f>ml& ref]r$ to 9 subsection 7a7 or 7b7 is acquir$1 leas$1 or r5t$4 7#b7 ,application to bus9ess entities ,! t]m beg9n+ f>m] %all include any corporation or p>tn]%ip if m ?an #ej p]c5t ( ! equity int]e/s 9 su* corporation or p>tn]%ip are held 7directly or indirectly7 by "o or m individuals describ$ 9 p>agraph 7#a74 7e7 ,aggregation rules ,rules simil> to ! rules ( section #aid7;b77#b7 %all apply = purposes ( subsections 7a77#b7 & 7b77#b7 ( ?is section4 7f7 ,recapture 7#a7 ,9 g5]al ,if any am\nt is exclud$ f ! gross income ( ! taxpay] ) respect to ! sale or ex*ange ( qualify+ f>m l& & su* qualify+ f>ml& ceases to be us$ z a f>m = f>m+ purposes 7)9 ! mean+ ( section #bjcb;,a7b77#b77;,a77 dur+ ! #e-ye> p]iod beg9n+ on ! date ( su* sale or ex*ange1 ! tax impos$ "u ?is subtitle on su* taxpay] = ! taxable ye> :i* includes ! date ( su* cessation %all be increas$ by ! applicable p]c5tage ( ! taxpay]'s tax b5efit ) respect to su* sale or ex*ange4 7#b7 ,applicable p]c5tage ,= purposes ( ?is subsection1 ! t]m applicable p]c5tage means-- 7,a7 #ajj p]c5t 9 ! case ( ! fir/ ye> ( ! #e-ye> p]iod ref]r$ to 9 p>agraph 7#a71 7,b7 #hj p]c5t 9 ! case ( ! second ye> ( su* p]iod1 7,c7 #fj p]c5t 9 ! case ( ! ?ird ye> ( su* p]iod1 7,d7 #dj p]c5t 9 ! case ( ! f\r? ye> ( su* p]iod1 & 7,e7 #bj p]c5t 9 ! case ( ! fif? ye> ( su* p]iod4 7#c7 ,tax b5efit ,= purposes ( ?is subsection1 ! t]m tax b5efit means1 ) respect to any sale or ex*ange1 ! excess (-- 7,a7 ! tax impos$ "u ?is subtitle = ! taxpay]'s taxable ye> :i* includes ! date ( su* sale or ex*ange1 det]m9$ )\t reg>d to ?is section1 ov] 7,b7 su* tax det]m9$ aft] ! application ( ?is section4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = "p ,,iii ( sub*apt] ,b ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #aci;,i ! foll[+ new item3 ,sec4 #aci,m4 ,c]ta9 ga9s & o!r income relat$ to use ( f>ml& by beg9n+ f>m]s4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 7d7 ,annual reports to ,congress ,! ,secret>y ( ! ,treasury1 or ! ,secret>y's delegate1 %all annually submit to ,congress a writt5 report review+ ! co/s & b5efits & conta9+ /ati/ical in=mation reg>d+ ! exclusion ( income "u section #aci,m ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is section74 ,su* report %all include ! total am\nt ( income exclud$ "u su* section1 & ! total numb] ( taxpay]s exclud+ su* income1 = ! taxable ye>s cov]$ by su* report4