26 U.S.C. § 58

1. (a)
   1. (1)For purposes of computing the amount of the alternative minimum taxable income for any taxable year of a taxpayer other than a corporation—
      1. (A)No loss of the taxpayer for such taxable year from any tax shelter farm activity shall be allowed.
      2. (B)Any loss from a tax shelter farm activity disallowed under subparagraph (A) shall be treated as a deduction allocable to such activity in the 1st succeeding taxable year.
   2. (2)For purposes of this subsection, the term “tax shelter farm activity” means—
      1. (A)any farming syndicate as defined in section 461(k), and
      2. (B)any other activity consisting of farming which is a passive activity (within the meaning of section 469(c)).
   3. (3)In determining the amount of the loss from any tax shelter farm activity, the adjustments of sections 56 and 57 shall apply.
2. (b)In computing the alternative minimum taxable income of the taxpayer for any taxable year, section 469 shall apply, except that in applying section 469—
   1. (1)the adjustments of sections 56 and 57 shall apply, and
   2. (2)in lieu of applying section 469(j)(7), the passive activity loss of a taxpayer shall be computed without regard to qualified housing interest (as defined in section 56(e)).
3. (c)For purposes of this section—
   1. (1)
      1. (A)The amount of losses to which subsection (a) or (b) applies shall be reduced by the amount (if any) by which the taxpayer is insolvent as of the close of the taxable year.
      2. (B)For purposes of this paragraph, the term “insolvent” means the excess of liabilities over the fair market value of assets.
   2. (2)If the taxpayer disposes of his entire interest in any tax shelter farm activity during any taxable year, the amount of the loss attributable to such activity (determined after carryovers under subsection (a)(1)(B)) shall (to the extent otherwise allowable) be allowed for such taxable year in computing alternative minimum taxable income and not treated as a loss from a tax shelter farm activity.