# 26 U.S.C. § 268: Sale of land with unharvested crop

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s268>. Cite pinpoints as 26 U.S.C. § 268(a)(1).

Where an unharvested crop sold by the taxpayer is considered under the provisions of section 1231 as “property used in the trade or business”, in computing taxable income no deduction (whether or not for the taxable year of the sale and whether for expenses, depreciation, or otherwise) attributable to the production of such crop shall be allowed.

## Regulations

- [Treas. Reg. § 1.268-1](/26/reg/1.268-1.md): Items attributable to an unharvested crop sold with the land. (interprets § 268)

## Leading cases

- [Beauchamp & Brown Groves Co. v. Commissioner, 44 T.C. 117 (1965)](https://www.courtlistener.com/opinion/4701815/beauchamp-brown-groves-co-v-commissioner/)
- [Dispoto v. Commissioner, T.C. Memo. 1990-394](https://www.courtlistener.com/opinion/4815984/dispoto-v-commissioner/)

## Connections

Cites: § 1231 Property used in the trade or business and involuntary conversions

Cited by: § 1016 Adjustments to basis

Derived from: 1939 § 24(f)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 80