Page:United States Statutes at Large Volume 83.djvu/681

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

paragraph (1)(B) exceeds the amount determined under paragraph (1)(A), then the applicable percentage of the lower of— "(i) that portion of the additional depreciation attributable to periods before January 1, 1970, in respect of the property, or "(ii) the excess of the amount determined under paragraph (1)(B) over the amount determined under paragraph (1)(A), shall also be treated as gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231. Such gain shall be recognized notwithstanding any other provision of this subtitle.

653

26 USC 1231.

" (B) APPLICABLE PERCENTAGE.—For purposes of subpara-

graph (A) the term 'applicable percentage' means 100 percent minus 1 percentage pomt for each full month the property was held after the date on which the property was held for 20 full months." (c) ADDITIONAL DEPRECIATION.—Section 1250(b) (relating to defi- 78 Stat. 101. nition of additional depreciation) is amended by adding at the end thereof the following new paragraph: " (4) ADDITIONAL DEPRECIATION ATTRIBUTABLE TO REHABILITATION EXPENDITURES.—The term 'additional depreciation' also

means, in the case of section 1250 property with respect to which a depreciation deduction for rehabilitation expenditures was allowed under section 167(k), the depreciation adjustments allowed under such section to the extent attributable to such property, except that, in the case of such property held for more than one year after the rehabilitation expenditures so allowed were incurred, it means such adjustments only to the extent that they exceed the amount of the depreciation adjustments which would have resulted if such adjustments had been determined under the straight line method of adjustment without regard to the useful life permitted under section 167(k)." (d)

Ante, p. esi.

CHANGE I N METHOD OF COMPUTING DEPRECIATION.—Section

167(e) (relating to depreciation) is amended by adding at the end thereof the following new paragraph: "(3) CHANGE WITH RESPECT TO SECITON I2.-)0 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 July 24, 1969, and in such manner as the Secretary or his delegate shall by regulation prescribe, elect to change his method of depreciation in respect of section 1250 property (as defined in section 1250(c)) from any declining balance or sum of the years-digits method to the straight line method. A n election may be made under this paragraph notwithstanding any provision to the contrary in an agreement under subsection (d). " (e) TECHNICAL AND CONFORMING CHANGES.—

(1) Subsection (d) of section 1250 is amended by striking out "subsection (a)(1) " wherever it appears and inserting in lieu thereof "subsection (a) ". (2) Subsection (f) of section 1250 is amended— (A) by striking out "subsection (a)(1) " in paragraph (1) and inserting in lieu thereof "subsection (a) ", and

^e Stat. 1034.

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