Page:United States Statutes at Large Volume 83.djvu/678

 650

PUBLIC LAW 91-172-DEC. 30, 1969

[83 STAT.

income from such building or structure shall include the rental value of the portion so occupied. " (C) CHANGE I N METHOD or DEPRECIATION.—Any change

in the computation of the allowance for depreciation for any taxable year, permitted or required by reason of the application of subparagraph (A), shall not be considered a change in a method of accounting. '(3)

PROPERTY CONSTRUCTED, ETC., BEFORE J U L Y

25, i96 9.—

Paragraph (1) of this subsection shall not apply, and subsection (b) shall apply, in the case of property— " (A) the construction, reconstruction, or erection of which was begun before July 25, 1969, or " (B) for which a written contract entered into before July 25, 1969, with respect to any part of the construction, reconstruction, or erection or for the permanent financing thereof, was on July 25, 1969, and at all times thereafter, binding on the taxpayer. "(4) USED SECTION 1250 PROPERTY.—Except as provided in paragraph (5), in the case of section 1250 property acquired after July 24, 1969, the original use of which does not commence with the taxpayer, the allowance for depreciation under this section shall be limited to an amount computed under— " (A) the straight line method, or " (B) any other method determined by the Secretary or his delegate to result in a reasonable allowance under subsection (a), not including— "(i) any declining balance method, "(ii) the sum of the years-digits method, or "(iii) any other method allowable solely by reason of the application of subsection (b)(4) or paragraph (1) (C) of this subsection. "(5) Us USED RESIDENTIAL RENTAL PROPERTY.—In the case of section 1250 property which is residential rental property (as defined in paragraph (2)(B)) acquired after July 24, 1969, having a useful life of 20 years or more, the original use of which does not commence with the taxpayer, the allowance for depreciation under this section shall be limited to an amount computed under— " (A^ the straight line method, " (B) the declining balance method, using a rate not exceeding 125 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 method determined by the Secretary or his delegate to result in a reasonable allowance under subsection (a), not including— " (i) the sum of the years-digits method, "(ii) any declining balance method using a rate in excess of the rate permitted under subparagraph (B), or "(iii) any other method allowable solely by reason of the application of subsection (b)(4) or paragraph (1)(C) of this subsection. "(6)

2?usci8°^*

S P E C I A L RULES.—

" (A) Under regulations prescribed by the Secretary or his delegate, rules similar to the rules provided in paragraphs ( ^) ' ( ^) ' (^^)' ^"^ (^^) ^* section 48(h) shall be applied for purposes of paragraphs (3), (4), and (5) of this subsection.

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