Page:United States Statutes at Large Volume 100 Part 3.djvu/313

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2121

whether or not such unit (or portion thereof) was so used, and "(ii) the deductions allocable to the trade or business in which such use occurs (but which are not allocable to such use) for such taxable year. Any amount not allowable as a deduction under this chapter by reason of the preceding sentence shall be taken into account as a deduction (allocable to such use) under this chapter for the succeeding taxable year." SEC. 144. DEDUCTION FOR MORTGAGE INTEREST AND REAL PROPERTY TAXES ALLOWABLE WHERE PARSONAGE ALLOWANCE OR MILITARY HOUSING ALLOWANCE RECEIVED.

Section 265 (relating to expenses and interest relating to taxexempt income) is amended by adding at the end thereof the following new paragraph: "(6) SECTION NOT TO APPLY WITH RESPECT TO PARSONAGE AND MiuTARY HOUSING ALLOWANCES.—No deduction shall be denied

under this section for interest on a mortgage on, or real property taxes on, the home of the taxpayer by reason of the receipt of an amount as-r "(A) a military housing allowance, or "(B) a parsonage allowance excludable from gross income under section 107." fi-i.'

Subtitle F—Effective Dates SEC. 15L EFFECTIVE DATES.

(a) GENERAL RULE.—Except as otherwise provided in this section, the amendments made by this title shall apply to taxable years beginning after December 31, 1986. (b) UNEMPLOYMENT COMPENSATION.—The amendment made by section 121 shall apply to amounts received after December 31, 1986, in taxable years ending after such date. (c) PRIZES AND AWARDS.—The amendments made by section 122 shall apply to prizes and awards granted after December 31, 1986. (d) SCHOLARSHIPS.—The amendments made by section 123 shall apply to taxable years beginning after December 31, 1986, but only in the case of scholarships and fellowships granted after August 16, 1986. (e)

PARSONAGE

AND

MILITARY

HOUSING

ALLOWANCES.—The

amendment made by section 144 shall apply to taxable years beginning before, on, or after, December 31, 1986.

TITLE II—PROVISIONS RELATING TO CAPITAL COST Subtitle A—Depreciation Provisions SEC. 201. MODIFICATION OF ACCELERATED COST RECOVERY SYSTEM.

(a) GENERAL RULE.—Section 168 (relating to accelerated cost recovery system) is amended to read as follows:

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