Page:United States Statutes at Large Volume 83.djvu/677

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

649

Subtitle C—Real Estate Depreciation SEC. 521. DEPRECIATION OF REAL ESTATE. (a)

SECTION

1250

PROPERTY AND REHABILITATION

PROPERTY.—

Section 167 (relating to depreciation) is amended by redesignating subsection (j) as subsection (m), and by inserting after subsection (i) the following new subsections: •' (j) SPECIAL RULES FOR SECTION 1250 PROPERTY.— "(1) GENERAL RULE.—Except as provided in paragraphs (2)

and (3), in the case of section 1250 property, subsection (b) shall not apply and the term 'reasonable allowance' as used in subsection (a) shall include an allowance computed in accordance with regulations prescribed by the Secretary or his delegate, under any of the following methods: " (A) the straight line method, " (B) the declining balance method, using a rate not exceeding 150 percent of the rate which would have been used had the annual allowance been computed under the method described in subparagraph (A), or " (C) any other consistent method productive of an annual allowance which, when added to all allowances for the period commencing with the taxpayer's use of the property and including the taxable year, does not, during the first twothirds of the useful life of the property, exceed the total of such allowances which would have been used had such allowances been computed under the method described in subparagraph (B). Nothing in this paragraph shall be construed to limit or reduce an allowance otherwise allowable under subsection (a) except where allowable solely by reason of paragraph (2), (3), or (4) of subsection (b). "(2)

RESIDENTIAL RENTAL PROPERTY.—

" (A) IN GENERAL.—Paragraph (1) of this subsection shall not apply, and subsection (b) shall apply in any taxable year, to a building or structure— " (i) which is residential rental property located within the United States or any of its possessions, or located within a foreign country if a method of depreciation for such property comparable to the method provided in subsection (b)(2) or (3) is provided by the laws of such country, and "(ii) the original use of which commences with the taxpayer. I n the case of residential rental property located within a foreign country, the original use of which commences with the taxpayer, if the allowance for depreciation provided under the laws of such country for such property is greater than that provided under paragraph (1) of this subsection, but less than that provided under subsection (b), the allowance for depreciation under subsection (b) shall be limited to the amount provided under the laws of such country. " (B) DEFINITION.—For purposes of subparagraph (A)j a building or structure shall be considered to be residential rental property for any taxable year only if 80 percent or more of the gross rental income from such building or structure for such year is rental income from dwelling units (within the meaning of subsection (k)(3)(C)). For purposes of the preceding sentence, if any portion of such building or structure is occupied by the taxpayer, the gross rental

80 Stat. 1513; Ante, p. 625.

26 USC le?

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