26 USC 58 - Denial of certain losses

U.S Code last checked for updates: Nov 22, 2024

§ 58.

Denial of certain losses

(a)

Denial of farm loss

(1)

In general

For purposes of computing the amount of the alternative minimum taxable income for any taxable year of a taxpayer other than a corporation—

(A)

Disallowance of farm loss

(B)

Deduction in succeeding taxable year

(2)

Tax shelter farm activity

For purposes of this subsection, the term “tax shelter farm activity” means—

(A)

any farming syndicate as defined in section 461(k), and

(B)

any other activity consisting of farming which is a passive activity (within the meaning of section 469(c)).

(3)

Determination of loss

(b)

Disallowance of passive activity loss

In computing the alternative minimum taxable income of the taxpayer for any taxable year, section 469 shall apply, except that in applying section 469—

(1)

the adjustments of sections 56 and 57 shall apply, and

(2)

in lieu of applying section 469(j)(7), the passive activity loss of a taxpayer shall be computed without regard to qualified housing interest (as defined in section 56(e)).

(c)

Special rules

For purposes of this section—

(1)

Special rule for insolvent taxpayers

(A)

In general

(B)

Insolvent

(2)

Loss allowed for year of disposition of farm shelter activity

(Added Pub. L. 99–514, title VII, § 701(a), Oct. 22, 1986, 100 Stat. 2335; amended Pub. L. 100–203, title X, § 10212(b), Dec. 22, 1987, 101 Stat. 1330–406; Pub. L. 100–647, title I, § 1007(d), Nov. 10, 1988, 102 Stat. 3432; Pub. L. 113–295, div. A, title II, § 221(a)(58)(E), (60)(B), Dec. 19, 2014, 128 Stat. 4047, 4048; Pub. L. 115–97, title I, § 12001(b)(9), Dec. 22, 2017, 131 Stat. 2093; Pub. L. 115–141, div. U, title IV, § 401(a)(30), Mar. 23, 2018, 132 Stat. 1185.)

cite as: 26 USC 58