Ark. Code R. 26-51-404 - 10(a)(1) (1997) - Gain on Sale of Property or Capital Assets

The term "farm" is to be interpreted in its ordinary, accepted sense. A farm is used to produce agricultural products such as livestock (including fish), dairy products, crops, fruits and nuts. A taxpayer engaged in forestry or the growing of timber or trees is not engaged in farming. A person cultivating or operating a farm for recreation or pleasure rather than a profit is not engaged in the business of farming. See IRC Regulations § 1.61 -4(d) and § 1.175 -3.