# 26 U.S.C. § 77: Commodity credit loans

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s77>. Cite pinpoints as 26 U.S.C. § 77(a)(1).

## § 77(a) Election to include loans in income

Amounts received as loans from the Commodity Credit Corporation shall, at the election of the taxpayer, be considered as income and shall be included in gross income for the taxable year in which received.

## § 77(b) Effect of election on adjustments for subsequent years

If a taxpayer exercises the election provided for in subsection (a) for any taxable year, then the method of computing income so adopted shall be adhered to with respect to all subsequent taxable years unless with the approval of the Secretary a change to a different method is authorized.

## Regulations

- [Treas. Reg. § 1.77-1](/26/reg/1.77-1.md): Election to consider Commodity Credit Corporation loans as income. (interprets § 77)
- [Treas. Reg. § 1.77-2](/26/reg/1.77-2.md): Effect of election to consider commodity credit loans as income. (interprets § 77)

## Leading cases

- [Thompson v. Commissioner, 322 F.2d 122 (5th Cir. 1963)](https://www.courtlistener.com/opinion/261699/fritz-thompson-and-dora-m-thompson-v-commissioner-of-internal-revenue/)
- [A. B. C. D. Lands, Inc. v. Commissioner, 41 T.C. 840 (1964)](https://www.courtlistener.com/opinion/4701639/a-b-c-d-lands-inc-v-commissioner/)
- [De Haven v. Commissioner, 36 T.C. 935 (1961)](https://www.courtlistener.com/opinion/4700956/de-haven-v-commissioner/)

## Connections

Cites: none

Cited by: § 1016 Adjustments to basis; § 3402 Income tax collected at source

Derived from: 1939 § 123

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 25
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1834