Farm income taxation under the house tax reform bill (H.R. 3838)

The House tax reform bill, H.R. 3838, makes some major changes in the tax provisions that most affect the way farm income is taxed. The investment tax credit is repealed, a new depreciation system is provided, restrictions are imposed on deducting preproduction expenses, a new minimum tax aimed at tax shelter investors is included, and tax rates are generally reduced. This report examines these and other provisions in the House tax bill.,Abstraction -- Introduction. Overview of HR 3838 -- Capital Gains -- Capital Recovery System -- Expensing Capital Costs -- The Minimum Tax -- Other Provisions. Limitation on Nonbusiness Interest Deduction ; Deductions for Fertilizer, Land-clearing, and Conservation Expenses ; Estimated Tax Rules ; "Netting" by Cooperatives ; Miscellaneous Provisions.,Jack Taylor, Specialist in Public Finance, Economics Division.,CRS 86-509 E,"January 7, 1986.",SuDoc# 14. 18/3