Page:United States Statutes at Large Volume 100 Part 3.djvu/327

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2135

"(ii) COMPUTER.—The term 'computer' means a programmable electronically activated device which— "(I) is capable of accepting information, applying prescribed processes to the information, and supplying the results of these processes with or without human intervention, and "(II) consists of a central processing unit containing extensive storage, logic, arithmetic, and control capabilities, "(iii) RELATED PERIPHERAL EQUIPMENT.—The term 'related peripheral equipment' means any auxiliary machine (whether on-line or off-line) which is designed to be placed under the control of the central processing unit of a computer. "(iv) EXCEPTIONS.—The term 'computer or peripheral equipment' shall not include— "(I) any equipment which is an integral part of other property which is not a computer, "(II) typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment, and "(III) equipment of a kind used primarily for amusement or entertainment of the user. "(C) HIGH TECHNOLOGY MEDICAL EQUIPMENT.—For purposes of this paragraph, the term 'high technology medical equipment' means any electronic, electromechanical, or computer-based high technology equipment used in the screening, monitoring, observation, diagnosis, or treatment of patients in a laboratory, medical, or hospital environment. "(3) LEASE TERM.—

"(A) IN GENERAL.—In determining a lease term— "(i) there shall be taken into account options to renew, and "(ii) 2 or more successive leases which are part of the same transaction (or a series of related transactions) with respect to the same or substantially similar property shall be treated as 1 lease. "(B)

SPECIAL

RULE

FOR

FAIR

RENTAL

OPTIONS

ON

NONRESIDENTIAL REAL PROPERTY OR RESIDENTIAL RENTAL PROPERTY.—For purposes of clause (i) of subparagraph (A), in the case of nonresidential real property or residential rental property, there shall not be taken into account any option to renew at fair market value, determined at the time of renewal. "(4) GENERAL ASSET ACCOUNTS.—Under regulations, a taxpayer may maintain 1 or more general asset accounts for any property to which this section applies. Except as provided in regulations, all proceeds realized on any disposition of property in a general asset account shall be included in income as ordinary income. "(5) CHANGES IN USE.—The Secretary shall, by regulations, provide for the method of determining the deduction allowable under section 167(a) with respect to any tangible property for any taxable year (and the succeeding taxable years) during which such property changes status under this section but continues to be held by the same person.

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