Page:United States Statutes at Large Volume 102 Part 4.djvu/724

 102 STAT. 3694

PUBLIC LAW 100-647—NOV. 10, 1988 (A) is constructed, reconstructed, or acquired by the taxpayer pursuant to a written contract which was binding on July 14, 1988, or (B) is constructed or reconstructed by the taxpayer and such construction or reconstruction began by July 14, 1988.

SEC. 6028. TREATMENT OF PROPERTY USED IN A FARMING BUSINESS.

(a) IN GENERAL.—Paragraph (2) of section 168(b) of the 1986 Code (as amended by title I) is amended by striking out "or" at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph: "(B) any property used in a farming business (within the meaning of section 263A(e)(4)), or". 26 USC 168 note.

(b) EFFECTIVE D A T E. —

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 1988. (2) EXCEPTION.—The amendments made by this section shall not apply to any property if such property is placed in service before July 1, 1989, and if such property— (A) is constructed, reconstructed, or acquired by the taxpayer pursuant to a written contract which was binding on July 14, 1988, or (B) is constructed or reconstructed by the taxpayer and such construction o;- reconstruction began by July 14, 1988. SEC. 6029. TREATMENT OF CERTAIN TREES.

(a) IN GENERAL.—Subparagraph (D) of section 168(e)(3) of the 1986 Code (relating to classification of certain property), as amended by section 6027 of this Act, is amended to read as follows: "(D) 10-YEAR PROPERTY.—The term '10-year property' includes— "(i) any single purpose agricultural or horticultural structure (within the meaning of section 48(p)), and "(ii) any tree or vine bearing fruit or nuts." (b) ONLY STRAIGHT-LINE DEPRECIATION ALLOWED.—Paragraph (3)

of section 168(b) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: "(D) Property described in subsection (e)(3)(D)(ii)." (c) CLASS LIFE DETERMINATION.—The table contained in subpara-

graph (B) of section 168(g)(3) of the 1986 C!ode, as amended by section 6027 of this Act, is amended by striking out the item relating to subparagraph (D) and inserting in lieu thereof the following new item: "(D)(i) 15 "(DKii) 20". 26 USC 168 note. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to property placed in service after December 31, 1988. SEC. 6030. ONE-YEAR DEFERRAL OF PROCEEDS FROM LIVESTOCK SOLD ON ACCOUNT OF DROUGHT.

(a) IN GENERAL.—Paragraph (1) of section 451(e) of the 1986 Code (relating to special rule for proceeds from livestock sold on account of drought) is amended by striking out "(other than livestock described in section 1231(b)(3))". 26 USC 451 note. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to sales or exchanges occurring after December 31, 1987.

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