Page:United States Statutes at Large Volume 100 Part 3.djvu/332

 100 STAT. 2140

PUBLIC LAW 99-514—OCT. 22, 1986 recovery period.", and (ii) by striking out "$4,800" each place it appears in subparagraph (B) thereof and inserting in lieu thereof "$1,475". (B) Subparagraph (A) of section 280F(b)(3) (relating to recapture) is amended by striking out "the straight line method over the earnings and profits life" and inserting in lieu thereof "section 168(g) (relating to alternative depreciation system)". (C) Paragraph (4) of section 280FOt>) (relating to definitions) is amended to read as follows: "(4) PROPERTY PREDOMINANTLY USED IN QUALIFIED BUSINESS
 * (iv) $1,475 for each succeeding taxable year in the

USE.—For purposes of this subsection, property shall be treated as predominantly used in a qualified business use for any taxable year if the business use percentage for such taxable year exceeds 50 percent." (D) Paragraph (4) of section 280F(c) is amended by striking out "section 168(j)(6)(B)" and inserting in lieu thereof "section 168(i)(3)(A)". (E) Paragraph (1) of section 280F(d) is amended by striking out "recovery deduction" and inserting in lieu thereof "depreciation deduction". (F) Paragraph (2) of section 280F(d) is amended— (i) by striking out "recovery deduction" and inserting in lieu thereof "depreciation deduction", and (ii) by striking out "use described in section 168(c)(l) (defining recovery property)" and inserting in lieu thereof "use in a trade or business (including the holding for the production of income)". (G) Clause (iv) of section 280F(d)(4)(A) is amended by striking out "section 168(j)(5)(D)" and inserting in lieu thereof "section 168(i)(2)(B)'\ (H) Paragraph (8) of section 280F(d) (defining unrecovered basis) is amended to read as follows: "(8) UNRECOVERED BASIS.—For purposes of subsection (a)(2), the term 'unrecovered basis' means the adjusted basis of the passenger automobile determined after the application of subsection (a) and as if all use during the recovery period were use in a trade or business (including the holding of property for the production of income)." (I) Paragraph (10) of section 280F(d) is amended by striking out ", notwithstanding any regulations prescribed under section 168(fK7),". (J) Paragraph (2) of section 280FOt>) is amended by striking out "the straight line method over the earnings and profits life for such property" and inserting in lieu thereof 'section 168(g) (relating to alternative depreciation system)". (K) Subsections (a) and (b) of section 280F are amended by striking out "recovery deduction" each place it appears and inserting in lieu thereof "depreciation deduction'. (5) SECTION 291.—

(A) Subparagraph (A) of section 291(a)(l) is amended by striking out "or section 1245 recovery property". (B) Paragraph (1) of section 291(c) is amended to read as follows:

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