(1) A deduction from Montana net income is allowed for each sale of 80 acres or more to a beginning farmer as provided in 80-12-211, MCA, provided the sale is approved by the agricultural loan authority. The deduction is the amount that would have to be included in net income resulting from the sale, up to a maximum deduction of $50,000. The deduction will be taken each year a payment is received until the loan is paid or the deductions for all years equal $50,000.

(2) To the extent that a net operating loss is created as a result of the deduction, such loss is not available for carryover or carryback provisions.

(3) The taxpayer may claim more than one deduction as a result of sales to beginning farmers provided each sale is approved by the agricultural loan authority.

(4) For tax deduction purposes, a copy of the approval of the transaction by the agricultural loan authority must be attached to the return claiming the deduction. The department may also require additional documentation on request to establish the eligibility of the transaction for a tax deduction.