Farm Tax Equity Act

Farm Tax Equity Act - Limits, under the Internal Revenue Code, deductions with respect to a taxpayer engaged in the business of farming to: (1) the gross income of the business for the taxable year; and (2) in the case of an individual or a bona fide family farm corporation, the higher of $10,000 or the amount of special deductions allowed by this Act, or for any other taxpayer, the amount of special deductions.

Prohibits the application of such deductions when the taxpayer uses specified accounting methods. Defines terms used in this Act.