Montana Code 15-30-3003. Montana farm and ranch risk management account — deposits — exclusion from income
15-30-3003. (Effective January 1, 2024) Montana farm and ranch risk management account — deposits — exclusion from income. (1) An individual or a family farm corporation engaged in an eligible agricultural business may hold a Montana farm and ranch risk management account that is composed of contributions that were made to the account prior to January 1, 2024, as provided in this part, to use as a risk management tool for the individual’s or family farm corporation‘s agricultural business. The number of risk management accounts that may be held is limited to one for each individual or family farm corporation.
Terms Used In Montana Code 15-30-3003
- Account: means a Montana farm and ranch risk management account. See Montana Code 15-30-3002
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Eligible agricultural business: means the business of agricultural production, as agricultural is defined in 15-1-101, including silviculture, conducted by an individual or family farm corporation that files net farm income reports for tax purposes as required by the United States internal revenue service. See Montana Code 15-30-3002
- Family farm corporation: means a corporation that consists of immediate family members. See Montana Code 15-30-3002
- Individual: means a human being and does not include an estate or trust. See Montana Code 15-30-3002
(2)For the purposes of this section, a taxpayer is considered to have made a deposit to an account if the deposit is made during a tax year beginning before January 1, 2024.
(3)A deposit not distributed within 3 years is considered to have been distributed to the taxpayer as provided in 15-30-3005.
(4)A portion of a deposit distributed within 6 months of the date deposited is income in the year for which an exclusion was taken. The taxpayer shall file a return or amended return as necessary to report the income in the appropriate year. (Terminates on occurrence of contingency–sec. 9, Ch. 262, L. 2001.)