Liquidation of a Farming or Fishing Business
If the taxpayer (or his/her partnership or S corporation) liquidates the farming or fishing business, gains on property sold within a reasonable time after operations cease can be designated as EFI. A period of one year after ceasing operations will be treated as a reasonable time. After that, what is “a reasonable time” depends on the facts and circumstances.
California Differences
California does not have an equivalent computation.