Page:United States Statutes at Large Volume 100 Part 3.djvu/514

 100 STAT. 2322

PUBLIC LAW 99-514—OCT. 22, 1986 "(3)

PHASE-OUT OF EXEMPTION AMOUNT.—The

exemption

amount of any taxpayer shall be reduced (but not below zero) by an amount equal to 25 percent of the amount by which the alternative minimum taxable income of the taxpayer exceeds— "(A) $150,000 in the case of a taxpayer described in paragraph (IX A) or (2), "(B) $112,500 in the case of a taxpayer described in paragraph (1)(B), and "(C) $75,000 in the case of a taxpayer described in paragraph (1)(C). "SEC. 56. ADJUSTMENTS IN COMPUTING ALTERNATIVE MINIMUM TAXABLE INCOME. "(a) ADJUSTMENTS APPLICABLE TO ALL TAXPAYERS.—In determin-

ing the amount of the alternative minimum taxable income for any taxable year the following treatment shall apply (in lieu of the treatment applicable for purposes of computing the regular tax): "(1) DEPRECIATION.— "(A) IN GENERAL.— "(i) PROPERTY OTHER THAN CERTAIN REAL PROPERTY.—

Except as provided in clause (ii), the depreciation deduction allowable under section 167 with respect to any tangible property placed in service after December 31, 1986, shall be determined under the alternative system of section 168(g). '•(ii) 150-PERCENT DECLINING BALANCE METHOD FOR CERTAIN PROPERTY.—The method of depreciation used shall be— "(I) the 150 percent declining balance method, "(II) switching to the straight line method for the 1st taxable year for which using the straight line method with respect to the adjusted basis as of the beginning of the year will yield a higher allowance. The preceding sentence shall not apply to any section 1250 property (as defined in section 1250(c)) or to any other property if the depreciation deduction determined under section 168 with respect to such other property for purposes of the regular tax is determined by using the straight line method. "(B) EXCEPTION FOR CERTAIN PROPERTY.—This paragraph

shall not apply to property described in paragraph (1), (2), (3), or (4) of section 168(a "(C) COORDINATION WITH TRANSITIONAL RULES.—

"(i) IN GENERAL.—This paragraph shall not apply to property placed in service after December 31, 1986, to which the amendments made by section 201 of the Tax Reform Act of 1986 do not apply. "(ii) TREATMENT OF CERTAIN PROPERTY PLACED IN SERVICE BEFORE 1987.—This paragraph shall apply to

any property to which the amendments made by section 201 of the Tax Reform Act of 1986 apply by reason of an election under section 203(a)(l)(B) of such Act without regard to the requirement of subparagraph (A) that the property be placed in service after December 31, 1986. "(D) NORMAUZATION RULES.—With respect to public utility property described in section 167(1)(3)(A), the Secretary

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