Page:United States Statutes at Large Volume 68A.djvu/96

 56

INTERNAL REVENUE CODE OF 1954

(3) AMOUNT OF DEDUCTION.—The amortization deduction provided in paragraphs (1) and (2) shall be an amount, with respect to each month of the amortization period within the taxable year, equal to the adjusted basis of the facility a t the end of such month, divided by the number of months (including the month for which the deduction is computed) remaining in the period. Such adjusted basis a t the end of the month shall be computed without regard to the amortization deduction for such month. The amortization deduction above provided with respect to any month shall be in lieu of the depreciation deduction with respect to such facility for such month provided by section 167. (b) ELECTION OF AMORTIZATION.—The election of the

taxpayer

under subsection (a)(1) to take the amortization deduction and to begin the 60-month period with the month following the month in which the facUity was completed shall be made only by a statement to that effect in the return for the taxable year in which the facility was completed. The election of the taxpayer under subsection (a)(1) to take the amortization deduction and to begin such period with the taxable year succeeding such year shall be made only by a statement to that effect in the return for such succeeding taxable year. The election of the taxpayer under subsection (a)(2) to take the amortization deduction shall be made only by a statement to that effect in the return for the taxable year in which the facility was acquired. Notwithstanding the preceding three sentences, the election of the taxpayer under subsection (a)(1) or (2) may be made, under such regulations as the Secretary or his delegate may prescribe, before the time prescribed in the applicable sentence. (c) TERMINATION

OF AMORTIZATION DEDUCTION.—A

taxpayer

which has elected under subsection (b) to take the amortization deduction provided in subsection (a) may, a t any time after making such election, discontinue the amortization deduction with respect to the remainder of the amortization period, such discontinuance to begin as of the beginning of any month specified by the taxpayer in a notice in writing filed with the Secretary or his delegate before the beginning of such month. The depreciation deduction provided under section 167 shall be allowed, beginning with the first month as to which the amortization deduction does not apply, and the taxpayer shall not be entitled to any further amortization deduction with respect to such facility. (d) DEFINITION OF GRAIN-STORAGE FACILITY.—For purposes of

this section, the term "grain-storage facility" means— (1) any corn crib, grain bin, or grain elevator, or any similar structure suitable primarily for the storage of grain, which crib, bin, elevator, or structure is intended by the taxpayer a t the time of his election to be used for the storage of grain produced by him (or, if the election is made by a partnership, produced by the members thereof); and (2) any public grain warehouse permanently equipped for receiving, elevating, conditioning, and loading out grain, the construction, reconstruction, or erection of which was completed after December 31, 1952, and on or before December 31, 1956. If any structure described in clause (1) or (2) of the preceding sentence is § 169(a)(3)

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