Part 510 - General Operating Procedures 

 510.18(b) 



(b) Gains from the sale of highly erodible land or converted ^^ 

 wetland are treated as ordinary income, and losses must be treated as 

 long term capital losses (Sec. 403 of Federal Tax Code) ; and 



(c) Deductible conservation expenses must be consistent with a 

 conservation plan as approved by the Soil Conservation Service or 

 comparaUsle state agency (Sec. 175 of the Federal Tax Code and GM 180, 

 Part 4 03) . 



510-8 



(180-V-NFSAM, Second Ed., Amend. 6, May 1991) 



