Method of accounting for corporations engaged in farming

Except as otherwise provided by law, the taxable income from farming of— For rules requiring capitalization of certain preproductive period expenses, see section 263A. For purposes of subsection (a), a corporation shall be treated as not being a corporation for any taxable year if it is— Any change in method of accounting made pursuant to this section shall be treated for purposes of section 481 as initiated by the taxpayer and made with the consent of the Secretary. Notwithstanding subsection (a) or section 263A, if— For purposes of paragraph (1), the term “annual accrual method of accounting” means a method under which revenues, costs, and expenses are computed on an accrual method of accounting and the preproductive period expenses incurred during the taxable year are charged to harvested crops or deducted in determining the taxable income for such years. For purposes of this subsection, if— For purposes of this subsection— The term “qualified partnership” means a partnership which is engaged in a qualified farming trade or business and each of the partners of which is a corporation other than— The term “qualified farming trade or business” means the trade or business of farming— For purposes of paragraphs (1) and (2) of section 263A(e), any election under this subparagraph shall be treated as if it were an election under subsection (d)(3) of section 263A. Unless the Secretary otherwise consents, an election under this subparagraph may be made only for the corporation’s 1st taxable year which begins after December 31, 1986, and during which the corporation engages in a farming business. Any such election, once made, may be revoked only with the consent of the Secretary.