Page:United States Statutes at Large Volume 76.djvu/1082

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PUBLIC LAW 87-834-OCT. 16, 1962

[76 STAT.

(b) CHANGE I N METHOD OF DEPRECIATION.—Subsection (e) of sec-

26 USC 167.

tion 167 (relating to depreciation) is amended to read as follows: "(e)

Ante, p. 1032.

CHANGE I N METHOD.— "(1) CHANGE FROM DECLINING BALANCE METHOD.—In the

ab-

sence of an agreement under subsection (d) containing a provision to the contrary, a taxpayer may at any time elect in accordance with regulations prescribed by the Secretary or his delegate to change from the method of depreciation described in subsection (b)(2) to the method described in subsection (b)(1). "(2) CHANGE WITH RESPECT TO SECTION 1245 PROPERTY.—A taxpayer may, on or before the last day prescribed by law (including extensions thereof) for filing his return for his first taxable year beginning after December 31, 1962, and in such manner as the Secretary or his delegate shall by regulations prescribe, elect to change his method of depreciation in respect of section 1245 property (as defined in section 1245(a)(3)) from any declining balance or sum of the years-digits method to the straight line method. An election may be made under this paragraph notwithstanding any provision to the contrary in an agreement under subsection (d). " (c) SALVAGE VALUE OF PERSONAL PROPERTY.— (1) AMOUNT TAKEN INTO ACCOUNT.—Section 167 (relating to

depreciation) is amended by redesignating subsections (f), (g), and (h) as (g), (h), and (i), respectively, and by inserting after subsection (e) the following new subsection: "(f)

SALVAGE VALUE.— " (1) GENERAL RULE.—Under

regulations prescribed by the Secretary or his delegate, a taxpayer may, for purposes of computing the allowance under subsection (a) with respect to personal property, reduce the amount taken into account as salvage value by an amount which does not exceed 10 percent of the basis of such property (as determined under subsection (g) as of the time as of which such salvage value is required to be determined). "(2) PERSONAL PROPERTY DEFINED.—For purposes of this subsection, the term 'personal property' means depreciable personal property (other than livestock) with a useful life of 3 years or more acquired after the date of the enactment of the Revenue Act of 1962." (2)

26 USC 179.

(A) Sections 179(d)(5) and 642(e) are each amended by striking out "167(g)" and inserting in lieu thereof "167(h)". (B) Section 179(d)(8) is amended by striking out "167 (f) " and inserting in lieu thereof "167 (g) ". (d)

26 USC 170.

Ante, p. 1032.

CONFORMING AMENDMENTS.—

SPECIAL RULE FOR CHARITABLE CONTRIBUTIONS OF SECTION 1245

PROPERTY.—Section 170 (relating to charitable, etc., contributions and gifts) is amended by redesignating subsections (e) and (f) as (f) and (g), respectively, and by inserting after subsection (d) the following new subsection: "(e)

S P E C I A L R u L E FOR C H A R I T A B L E CONTRIBUTIONS OF S E C T I O N 1 2 4 5

PROPERTY.—The amount of any charitable contribution taken into account under this section shall be reduced by the amount which would have been treated as gain to which section 1245(a) applies if the property contributed had been spld at its fair market value (determined at the time of such contribution)." 26 USC 613.

(e) COMPUTATION OF TAXABLE INCOME FOR PURPOSES OF LIMITATION ON PERCENTAGE DEPLETION DEDUCTION.—Section 613(a) (relating to

percentage depletion) is amended by inserting after the second sentence thereof the following new sentence: "For purposes of the preceding sentence, the allowable deductions taken into account with

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