Implications of Death of a Farmer for CCC Loan Purposes

Abstract

<p>The announcement in 2002<strong>1 </strong>that elections involving Commodity Credit Corporation<strong>2 </strong>loans were retroactively made subject to the automatic consent procedures (with the list of<strong> </strong>situations where the automatic consent procedure is not applicable waived),<strong>3 </strong>has opened<strong> </strong>up new options for handling the death of a taxpayer.<strong>4 </strong>One of the important aspects involves<strong> </strong>the issue of income tax basis for commodities that are subject to a CCC election to treat<strong> </strong>CCC loans as income with that election in effect at the time of death, whether that election<strong> </strong>is likely to produce the best possible result for the taxpayer and whether it is possible to<strong> </strong>make a new election effective for the year of death.<strong></strong></p>