Page:United States Statutes at Large Volume 100 Part 3.djvu/527

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2335

the case of a series of refundings, the original bond) was issued before August 8, 1986. "(iv) CERTAIN BONDS ISSUED BEFORE SEPTEMBER i,

1986.—For purposes of this subparagraph, a bond issued before September 1, 1986, shall be treated as issued before August 8, 1986, unless such bond would be a private activity bond if— "(I) paragraphs (1) and (2) of section 141(b) were applied by substituting '25 percent' for *10 percent' each place it appears, "(II) paragraphs (3), (4), and (5) of section 141(b) did not apply, and "(III) subparagraph (B) of section 141(c)(l) did not apply. "(6) APPRECIATED PROPERTY CHARITABLE DEDUCTION.—

"(A) IN GENERAL.—The amount by which the deduction allowable under section 170 would be reduced if all capital gain property were taken into account at its adjusted basis. "(B) CAPITAL GAIN PROPERTY.—For purposes of subpara-

graph (A), the term 'capital gain property' has the meaning given to such term by section 170(b)(l)(C)(iv). Such term shall not include any property to which an election under section 170(b)(l)(C)(iii) applies. "(7) ACCELERATED DEPRECIATION OR AMORTIZATION ON CERTAIN PROPERTY PLACED IN SERVICE BEFORE JANUARY 1, 1987. — The

amounts which would be treated as items of tax preference with respect to the taxpayer under paragraphs (2), (3), (4), and (12) of this subsection (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986). The preceding sentence shall not apply to any property to which section 56(a) (1) or (5) applies. "(b) STRAIGHT LINE RECOVERY OF INTANGIBLES DEFINED.—For purposes of paragraph (2) of subsection (a)— "(1) IN GENERAL.—The term 'straight line recovery of intangibles', when used with respect to intangible drilling and development costs for any well, means (except in the case of an election under paragraph (2)) ratable amortization of such costs over the 120-month period beginning with the month in which production from such well begins. "(2) ELECTION.—If the taxpayer elects with respect to the intangible drilling and development costs for any well, the term 'straight line recovery of intangibles' means any method which would be permitted for purposes of determining cost depletion with respect to such well and which is selected by the taxpayer for purposes of subsection (a)(2). "SEC. 58. DENIAL OF CERTAIN LOSSES. "(a) DENIAL OF FARM Loss.—

"(1) IN GENERAL.—For purposes of computing the amount of the alternative minimum taxable income for any taxable year of a taxpayer other than a corporation— "(A) DISALLOWANCE OF FARM LOSS.—NO loss of the taxpayer for such taxable year from any tax shelter farm activity shall be allowed. "(B) DEDUCTION IN SUCCEEDING TAXABLE YEAR.—Any loss from a tax shelter farm activity disallowed under subpara-

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