SECTION 710:50-15-64. Elections for individuals engaged in a farming business

(a)   For tax years beginning after December 31, 2000, an individual engaged in a farming business may elect to determine the tax imposed by 68 O.S. § 2355 as the sum of:

(1)   A tax computed under Section 2355, on taxable income, reduced by elected farm income; and

(2)   The increase in tax imposed by 68 O.S. § 2355 which would result if taxable income for each of the three (3) prior taxable years were increased by an amount equal to one-third (1/3) of the elected farm income.

(b)   An adjustment under this Section for any taxable year shall be taken into account in applying the provisions of this Section for any subsequent taxable year.

(c)   For purposes of this Section, "elected farm income" means so much of the taxable income for the taxable year which is attributable to any farming business, and which is specified in the election under subsection (a) of this Section. For purposes of this subsection, a gain from the sale or other disposition of property, other than land, regularly used by the taxpayer in a farming business for a substantial period shall be treated as attributable to the farming business;

(d)   "Individual" shall not mean or include any estate or trust.

(e)   "Farming business" shall have the same meaning as the term is defined in 26 U.S.C. § 263A(e)(4).

[Source: Added at 18 Ok Reg 2810, eff 6-25-01]