{"identifier":"/us/usc/t26/s1252","title":26,"num":"\u00a7\u202f1252.","heading":"Gain from disposition of farm land","text":"\u00a7\u202f1252.\nGain from disposition of farm land\n(a)\nGeneral rule\n(1)\nOrdinary income\nExcept as otherwise provided in this section, if farm land which the taxpayer has held for less than 10 years is disposed of, the lower of\u2014\n(A) the applicable percentage of the aggregate of the deductions allowed under section 175 (relating to soil and water conservation expenditures) for expenditures made by the taxpayer with respect to the farm land or\n(B) the excess of\u2014\n(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\n(ii) the adjusted basis of such land,\nshall be treated as ordinary income. Such gain shall be recognized notwithstanding any other provision of this subtitle.\n(2)\nFarm land\nFor purposes of this section, the term \u201cfarm land\u201d means any land with respect to which deductions have been allowed under section 175 (relating to soil and water conservation expenditures).\n(3)\nApplicable percentage\nFor purposes of this section\u2014\nIf the farm land is disposed of\u2014\nThe applicable\npercentage is\u2014\nWithin 5 years after the date it was acquired\n100 percent.\nWithin the sixth year after it was acquired\n80 percent.\nWithin the seventh year after it was acquired\n60 percent.\nWithin the eighth year after it was acquired\n40 percent.\nWithin the ninth year after it was acquired\n20 percent.\n10 years or more years after it was acquired\n0 percent.\n(b)\nSpecial rules\nUnder regulations prescribed by the Secretary, rules similar to the rules of section 1245 shall be applied for purposes of this section.","url":"https://projectusc.org/usc/t26/s1252.html","content":[{"t":"sec","id":"/us/usc/t26/s1252","children":[{"t":"num","text":"\u00a7\u202f1252."},{"t":"heading","text":"Gain from disposition of farm land"},{"t":"subsec","id":"/us/usc/t26/s1252/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"General rule"},{"t":"para","id":"/us/usc/t26/s1252/a/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Ordinary income"},{"t":"chapeau","text":"Except as otherwise provided in this section, if farm land which the taxpayer has held for less than 10 years is disposed of, the lower of\u2014"},{"t":"subpara","id":"/us/usc/t26/s1252/a/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the applicable percentage of the aggregate of the deductions allowed under section 175 (relating to soil and water conservation expenditures) for expenditures made by the taxpayer with respect to the farm land or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1252/a/1/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" the excess of\u2014"},{"t":"clause","id":"/us/usc/t26/s1252/a/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1252/a/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the adjusted basis of such land,","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"shall be treated as ordinary income. Such gain shall be recognized notwithstanding any other provision of this subtitle.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1252/a/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Farm land"},{"t":"content","children":[{"t":"p","text":"For purposes of this section, the term \u201cfarm land\u201d means any land with respect to which deductions have been allowed under section 175 (relating to soil and water conservation expenditures).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1252/a/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Applicable percentage"},{"t":"content","children":[{"t":"p","text":"For purposes of this section\u2014","children":[{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"If the farm land is disposed of\u2014"}]},{"t":"p","children":[{"t":"text","text":"The applicable"}]},{"t":"p","children":[{"t":"text","text":"percentage is\u2014"}]},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Within 5 years after the date it was acquired"}]},{"t":"p","text":"100 percent."},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Within the sixth year after it was acquired"}]},{"t":"p","text":"80 percent."},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Within the seventh year after it was acquired"}]},{"t":"p","text":"60 percent."},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Within the eighth year after it was acquired"}]},{"t":"p","text":"40 percent."},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Within the ninth year after it was acquired"}]},{"t":"p","text":"20 percent."},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"10 years or more years after it was acquired"}]},{"t":"p","text":"0 percent."},{"t":"text","text":"\n"},{"t":"text","text":"\n","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1252/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Special rules"},{"t":"content","children":[{"t":"p","text":"Under regulations prescribed by the Secretary, rules similar to the rules of section 1245 shall be applied for purposes of this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}