Page:United States Statutes at Large Volume 76.djvu/1016

 968

PUBLIC LAW 87-834-OCT. 16, 1962

[76 STAT.

" (v) any container of a United States person which is used in the transportation of property to and from the United States; and " (vi) any property (other than a vessel or an aircraft) of a United States person which is used for the purpose of exploring for, developing, removing, or transporting resources from the outer Continental Shelf (within the meaning of section 2 of the Outer Continental Shelf Lands Act, as amended and supplemented; 43 U.S.C. 67 Stat. 462.

Ante, p. 962.

SCC. 1 3 3 1). "(3) PROPERTY USED FOR LODGING.—Property which is used pre-

dominantly to furnish lodging or in connection with the furnishing of lodging shall not be treated as section 38 property. The preceding sentence shall not apply to— " (A) nonlodging commercial facilities which are available to persons not using the lodging facilities on the same basis as they are available to persons using the lodging facilities, and " (B) property used by a hotel or motel in connection with the trade or business of furnishing lodging where the predominant portion of the accommodations is used by transients. "(4)

26 USC 521.

Ante. p. 964.

Property used by an organization (other than a cooperative described in section 521) which is exempt from the tax imposed by this chapter shall be treated as section 38 property only if such property is used predominantly in an unrelated trade or business the income of which is subject to tax under section 511. "(5) PROPERTY USED BY GOVERNMENTAL UNITS.—Property used by the United States, any State or political subdivision thereof, any international organization, or any agency or instrumentality of any of the foregoing shall not be treated as section 38 property. "(6) LIVESTOCK.—Livestock shall not be treated as section 38 property. " (b) N E W SECTION 38 PROPERTY.—For purposes of this subpart, the term 'new section 38 property' means section 38 property— "(1) the construction, reconstruction, or erection of which is completed by the taxpayer after December 31, 1961, or "(2) acquired after December 31, 1961, if the original use of such property commences with the taxpayer and commences after such date. In applying section 46(c)(1)(A) in the case of property described in paragraph (1), there shall be taken into account only that portion of the basis which is properly attributable to construction, reconstruction, or erection after December 31, 1961. "(c)

26 USC 179.

PROPERTY USED BY CERTAIN TAX-EXEMPT ORGANIZATIONS.—

USED SECTION 38 PROPERTY.—

" (1) IN GENERAL.—For purposes of this subpart, the term 'used section 38 property' means section 38 property acquired by purchase after December 31, 1961, which is not new section 38 property. Property shall not be treated as 'used section 38 property' if, after its acquisition by the taxpayer, it is used by a person who used such property before such acquisition (or by a person who bears a relationship described in section 179(d)(2)(A) or (B) to a person who used such property before such acquisition). "(2)

DOLLAR LIMITATION.—

" (A) IN GENERAL.—The cost of used section 38 property taken into account under section 46(c)(1)(B) for any taxable year shall not exceed $50,000. If such cost exceeds $50,000, the taxpayer shall select (at such time and in such manner as the Secretary or his delegate shall by regulations prescribe) the

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