Page:United States Statutes at Large Volume 72 Part 1.djvu/1722

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26 USC 1014.

26 USC 167.

PUBLIC LAW 85-866-SEPT. 2, 1958

[72 S T A T.

" (C) the basis of the property in the hands of the person acquiring it is not determined— " (i) in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or "(ii) under section 1014(a) (relating to property acquired from a decedent). " (3) COST.—For purposes of this section, the cost of property does not include so much of the basis of such property as is determined by reference to the basis of other property held at any time by the person acquiring such property. "(4) SECTION NOT TO APPLY TO TRUSTS.—This section shall not apply to trusts. "(5) ESTATES.—In the case of an estate, any amount apportioned to an heir, legatee, or devisee under section 167(g) shall not be taken into account in applying subsection (b) of this section to section 179 property of such heir, legatee, or devisee not held by such estate. " (6) DOLLAR LIMITATION or AFFILIATED GROUP.—For purposes

26 USC 1504.

of subsection (b) of this section— " (A) all members of an affiliated group shall be treated as one taxpayer, and " (B) the Secretary or his delegate shall apportion the dollar limitation contained in such subsection (b) among the members of such affiliated group in such manner as he shall by regulations prescribe. "(7) AFFILIATED GROUP DEFINED.—For purposes of paragraphs (2) and (6), the term 'affiliated group' has the meaning assigned to it by section 1504, except that, for such purposes, the phrase 'more than 50 percent' shall be substituted for the phrase 'at least 80 percent' each place it appears in section 1504(a). "(8) ADJUSTMENT TO BASIS; WHEN MADE.—In applying sec-

26 USC 1016.

tion 167(f), the adjustment under section 1016(a)(2) resulting by reason of an election made under this section with respect to any section 179 property shall be made before any other deduction allowed by section 167(a) is computed. "(e) REGULATIONS.—The Secretary or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this section." (b) TECHNICAL AMENDMENT.—The table of sections for such part VI is amended by adding at the end thereof the following new item: "Sec. 179. Additional first-year depreciation allowance for small business." (c) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to taxable years ending after June 30, 1958. SEC. 205. INCREASE OF MINIMUM ACCUMULATED EARNINGS CREDIT. (a) INCREASE.—Paragraphs (2) (relating to minimum accumulated earnings credit) and (3) (relating to accumulated earnings credit for holding and investment companies) of section 535(c), and 26 USC 53 5, section 1551 (^relating to disallowance of surtax exemption and accumulated earnmgs credit), of the Internal Revenue Code of 1954 are each amended by striking out "$60,000" and inserting in lieu thereof "$100,000". (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply with respect to taxable years beginning after December 31, 1957.

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