A bill to amend the Internal Revenue Code of 1954 to limit losses allowable with respect to farming operations which are incurred by taxpayers whose principal business activity is not farming.

[AI summary unavailable — showing source text] Limits losses allowable as deductions, under the Internal Revenue Code of 1954, with respect to farming operations which are incurred by taxpayers whose principal business activity is not farming. States that such deductions shall not exceed an aggregate amount equal to the sum of the gross income derived from the business of farming for the taxable year; and in the case of an individual whose prinicpal residence is on a farm, the gross income derived by such individual and his spouse for the taxable year from wages and salaries for personal services, timber located on a farm, and royalties derived from property on which the taxpayer's farming operations are conducted. (Adds 26 U.S.C. 277)…