Page:United States Statutes at Large Volume 83.djvu/680

 652 26 USC /2°50

PUBLIC LAW 91-172-DEC. 30, 1969 ^^^

EECAPTURE OF ADDITIONAL DEPRECIATION.

[83 STAT. Sectioil

1250(a)

(relating to gain from dispositions of certain depreciable realty) is amended to read as follows: " (a) GENERAL RULE.—Except as otherwise provided in this section— "(1) ADDITIONAL DEPRECIATION AFTER DECEMBER 31, 1969.—If

68A Stat. 325.

75 Stat. 150; 12 USC 1715/, 1715Z-1. ^°^'' P- ^'^-

Ante, p. 649.

Ante, p. 651.

section 1250 property is disposed of after December 31, 1969, the applicable percentage of the lower of— " (A) that portion of the additional depreciation (as defined in subsection (b)(1) or (4)) attributable to periods after December 31, 1969, in respect of the property, or " (B) the excess of— " (i) the amount realized (in the case of a sale, exchange, or involuntary conversion), or the fair market value of such property (in the case of any other disposition), over "(ii) the adjusted basis of such property, shall be treated as gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231. Such galu shall be recognized notwithstanding any other provision of this subtitle. " (C) APPLICABLE PERCENTAGE.—For purposes of paragraph (1), the term 'applicable percentage' means— " (i) in the case of section 1250 property disposed of pursuant to a written contract which was, on July 24, 1969, and at all times thereafter, binding on the owner of the property, 100 percent minus 1 percentage point for each full month the property was held after the date the property was held 20 full months; "(ii) in the case of section 1250 property constructed, reconstructed, or acquired by the taxpayer before January 1, 1975, with respect to which a mortgage is insured under section 221(d)(3) or 236 of the National Housing j^ct, or housing is financed or assisted by direct loan or tax abatement under similar provisions of State or local laws, and with respect to which the owner is subject to the restrictions described in section 1039(b)(1)(B), 100 percent minus one percentage point for each full month the property was held after the date the property was held 20 full months; "(iii) in the case of residential rental property (as defined in section 167( j)(2)(B)) other than that covered by clauses (i) and ( i i), 100 percent minus 1 percentage point for each full month the property was held after the date the property was held 100 full months; "(iv) in the case of section 1250 property with respect to which a depreciation deduction for rehabilitation expenditures was allowed under section 167(k), 100 percent minus 1 percentage point for each full month in excess of 100 full months after the date on which such property was placed in service; and " (v) m the case of all other section 1250 property, 100 percent. Clauses (i), (ii), and (iii) shall not apply with respect to the additional depreciation described in subsection (b)(4). " (2) ADDITIONAL

DEPRECIATION BEFORE J A N U A R Y

i,

1970.—

" (A) IN GENERAL.—If section 1250 property is disposed of after December 31, 1963, and the amount determined under

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