Par. 2. Sections 1.1062-0 through 1.1062-3 are added to read as follows:
This section lists the major captions contained in §§ 1.1062-1 through 1.1062-3.
§ 1.1062-1 Section 1062 general rules and definitions.
(a) Scope.
(b) Acceleration event.
(c) Applicable net tax liability.
(d) C corporation.
(e) Commissioner.
(f) Consolidated group; member.
(g) Eligible section 1062 transferee.
(h) Eligible section 1062 transferee exception.
(i) Eligible section 1062 transferor.
(j) Farm.
(k) Farming purposes.
(l) Net income tax.
(m) Pass-through entity.
(n) Prior 10-year period.
(o) Qualified farmland property.
(1) In general.
(2) Certain periods of non-use disregarded.
(3) Certain acquisitions of qualified farmland property during the prior 10-year period.
(4) Certain residential real property.
(5) Real property partially used or leased for farming purposes.
(6) Portion of real property covered by covenant.
(7) Real property used or leased by a pass-through entity.
(i) Use of qualified farmland property by a pass-through entity.
(ii) Sale or exchange by a pass-through entity.
(8) Real property.
(p) Qualified farmer.
(1) In general.
(2) Plan or arrangement.
(q) Qualified sale or exchange.
(r) Relevant taxable year.
(s) S corporation.
(t) Section 1062 covenant.
(1) In general.
(2) Other legally enforceable restrictions.
(u) Section 1062 election.
(v) Specified individual.
(w) Transfer agreement.
(x) Examples.
(1) Example 1: Certain periods of non-use disregarded.
(2) Example 2: Certain acquisitions of qualified farmland property during the prior 10-year period.
(3) Example 3: Qualified farmer's acquisition through a disregarded entity.
(4) Example 4: Qualified farmer's subsequent contribution to an S corporation.
(5) Example 5: Failure to attach the section 1062 covenant to the return for the relevant taxable year.
(y) Applicability date.
§ 1.1062-2 Election to pay in installments tax on the gain from qualified sales or exchanges and other special rules.
(a) Section 1062 election.
(1) In general.
(2) Eligible taxpayers.
(i) In general.
(ii) Section 1062 election by a pass-through entity.
(iii) Section 1062 election by a consolidated group.
(iv) Exception in the case of certain acceleration events.
(b) Time and manner of making a section 1062 election.
(1) In general.
(2) Pass-through entities.
(3) Revocation of election.
(c) Installment payments.
(1) In general.
(2) Due date of installment payments.
(3) Extension for specified individuals.
(4) Increased installment payments due to a deficiency.
(i) In general.
(ii) Timing.
(iii) Exception for negligence, intentional disregard, or fraud.
(d) Applicable net tax liability.
(e) Allocation of basis and amount realized from a sale or exchange of property only a portion of which is qualified farmland property
(f) Coordination with other provisions.
(g) Examples.
(1) Example 1: Pass-through entity.
(2) Example 2: Tiered pass-through entities.
(3) Example 3: Pass-through entity subject to entity-level tax.
(4) Example 4: Death of the individual after the qualified sale or exchange but before the section 1062 election is made
(5) Example 5: Coordination with section 453.
(6) Example 6: Coordination with section 121.
(h) Applicability date.
§ 1.1062-3 Acceleration of payments.
(a) Acceleration of remaining installment payments.
(b) Acceleration events.
(1) In general.
(2) Due date of remaining installment payments.
(3) Consolidated groups.
(c) Eligible section 1062 transferee exception.
(1) In general.
(2) Transfer agreement.
(i) Manner of making transfer agreement.
(ii) Timing.
(iii) Signature requirement.
(iv) Terms of transfer agreement.
(3) Consent of Commissioner.
(i) In general.
(ii) Material misrepresentations and omissions.
(4) Effect of assumption.
(i) In general.
(ii) Eligible section 1062 transferee.
(d) Examples.
(1) Example 1: Acceleration event—C corporation.
(2) Example 2: Acceleration event—S corporation.
(3) Example 3: Acceleration event—consolidated group.
(4) Example 4: Acceleration event—grantor trust.
(5) Example 5: Acceleration event—non-grantor trust.
(e) Applicability date.