### Question
How is the "excess farm loss" defined?


### Answer
The term **excess farm loss** is defined in *26 U.S.C. § 461* as follows -

> the excess of—


(i) the aggregate deductions of the taxpayer for the taxable year which are attributable to farming businesses of such taxpayer (determined without regard to whether or not such deductions are disallowed for such taxable year under paragraph (1)), over


(ii) the sum of—


(I) the aggregate gross income or gain of such taxpayer for the taxable year which is attributable to such farming businesses, plus


(II) the threshold amount for the taxable year

#### Citation:
  - *26 U.S.C. § 461*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart C-Taxable Year for Which Deductions Taken**

