Page:United States Statutes at Large Volume 83.djvu/749

 83 STAT. ]

PUBLIC L M _ 9 W 7 ^ - D E a 30, 1969

" (i) first to the section 1250 property described in subparagraph (E)(i), in the amount determined under such subparagraph, reduced by the amount of gain not recognized attributable to the section 1250 property dispose:^ of, "(ii) then to any property (other than section 1250 property) to which section 1039 applies, in the amount of its coit, reduced by the amount of gain not recognized except to the extent taken into account under clause (i), and "(iii) then to the section 1250 property described in subparagraph (E) (ii). in the amount determined thereunder, reduced by the amount of gain not recognized except to the extent taken into account under clauses (i) and (ii).

721

Ante, p. 7\8.

" (D) ADDITIONAL DEPBECIATION WITH RESPECT TO PROPERTY DISPOSED OF.—The additional depreciation with respect

to any property acquired shall include the additional depreciation with respect to the corresponding section 1250 property disposed 01, reduced by the amount of gain recognized attributable to such property. " (E) PROPERTY CONSISTING OF MORE THAN ONE ELEMENT.—

There shall be treated as a separate element of section 1250 property— "(i) that portion of the section 1250 property acquired the cost of which does not exceed the net amount realized (as defined in section 1039(b)) attributable to the section 1250 property disposed of, reduced by the amount of gain recognized (if any) attributable to such property, and "(ii) that portion of the section 1250 property acquired the cost of which exceeds the net amount realized (as defined in section 1039(b)) attributable to the section 1250 property disposed of. " (F) ALLOCATION RULES.—For purposes of this paragraph— "(i) the amount of gain recognized attributable to the section 1250 property disposed of shall be the net amount realized with respect to such property, reduced by the greater of the adjusted basis of the section 1250 property disposed of or the cost of the section 1250 property acquired, but shall not exceed the gain recognized in the transaction, and "(ii) if any section 1250 property is treated as consisting of more than one element by reason of the application of subparagraph (E) to a prior transaction, then the amount of gain recognized, the net amount realized, and the additional depreciation, with respect to each such element shall be allocated in accordance with regulations prescribed by the Secretary or his delegate." (2) Section 1250(e) (relating to holding period) is amended by adding at the end thereof the following new paragraph: "(4) QUALIFIED LOW-INCOME HOUSING.—The holding period of any section 1250 property acquired which is described in subsection (d)(8)(E)(i) shall include the holding period of the corresponding element of section 1250 property disposed of."

Ante, p. e52.

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