[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.268-1]

[Page 589]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.268-1  Items attributable to an unharvested crop sold with the land.

    In computing taxable income no deduction shall be allowed in respect 
of items attributable to the production of an unharvested crop which is 
sold, exchanged, or involuntarily converted with the land and which is 
considered as property used in the trade or business under section 
1231(b)(4). Such items shall be so treated whether or not the taxable 
year involved is that of the sale, exchange, or conversion of such crop 
and whether they are for expenses, depreciation, or otherwise. If the 
taxable year involved is not that of the sale, exchange, or conversion 
of such crop, a recomputation of the tax liability for such year shall 
be made; such recomputation should be in the form of an ``amended 
return'' if necessary. For the adjustments to basis as a result of such 
disallowance, see section 1016(a)(11) and the regulations thereunder.