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Thus, respondent reasoned that the sales pursuant to the con-
tracts constitute dispositions of property described in section
1221(1). Therefore, respondent concluded, under section 56(a)(6),
for AMT purposes, petitioners must determine income from the
grain sales without regard to the installment method. Accord-
ingly, respondent argued that the gain from the contracts must be
included in petitioners' income in 1991 for purposes of calcu-
lating their AMTI.
However, on August 5, 1997, the President signed the
Taxpayer Relief Act of 1997, Pub. L. 105-34, 111 Stat. 788 (the
Act). Section 403 of the Act provides:
SEC. 403. Minimum Tax Not to Apply to Farmers' Install-
ment Sales.
(a) In general.--Subsection (a) of section 56
is amended by striking paragraph (6) (relating to
treatment of installment sales) * * *.
(b) Effective dates.--
(1) In general.--The amendment made
by this section shall apply to disposi-
tions in taxable years beginning after
December 31, 1987.
This provision removes section 56(a)(6) from the Internal Revenue
Code. Further, the amendment is made applicable to dispositions
after December 31, 1987. Thus, this provision covers the sales
made in 1991 under the contracts, and petitioners are therefore
permitted to use the installment method in calculating their AMTI
for 1991. Accordingly, we conclude that income from the con-
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