Page:United States Statutes at Large Volume 85.djvu/532

 502

76 Stat. 419. Ante, p. 501,

Post, p. 503.

PUBLIC LAW 92-178-DEC. 10, 1971

[85 STAT.

"(viii) any communications satellite (as defined in section 103(3) of the Communications Satellite Act of 1962, 47 U.S.C. sec. 702(3)), or any interest therein, of a United States person;". (3) Section 48(a)(2)(B) (relating to exceptions from rule for property used outside the United States) is amended by inserting after clause (viii) (as added by paragraph (2)) the following new clause: "(ix) any cable, or any interest therein, of a domestic corporation engaged in furnishing telephone service to which section 46(c)(3)(B) (iii) applies (or of a wholly owned domestic subsidiary of such a corporation), if such cable is part of a submarine cable system which constitutes part of a communication link exclusively between the United States and one or more foreign countries; and", (d) CERTAIN PROPERTY USED To EXPLORE FOR, DEVELOP, KEMOVE, AND TRANSPORT RESOURCES FROM OCEAN WATERS AND SUBMARINE

26 USC 4^8.^'

84 Stat. 2060.

68A Stat. 303.

DEPOSITS.—Section 4 8 (a)(2)(B) (relating to exceptions from rule for property used outside the United States) is amended by inserting after clause (ix) (as added by subsection (c)(3)) the following new clause: " (x) any property (other than a vessel or an aircraft) of a United States person which is used in international or territorial waters for the purpose of exploring for, developing, removing, or transporting resources from ocean waters or deposits under such waters." (^) I^ivESTOCK.—Section 48(a)(6) (relating to livestock) is amended to read as follows: "(6) LIVESTOCK.—Livestock (other than horses) acquired by the taxpayer shall be treated as section 38 property, except that if substantially identical livestock is sold or otherwise disposed of by the taxpayer during the one-year period beginning 6 months bcforc the date of such acquisition and if section 47(a) (relating to certain dispositions, etc., of section 38 property) does not apply to such sale or other disposition, then, unless such sale or other disposition constitutes an involuntary conversion (within the meaning of section 1033), the cost of the livestock acquired shall, for purposes of this subpart, be reduced by an amount equal to the amount realized on such sale or other disposition. Horses shall not be treated as section 38 property." (f)

>.f,V!^T\VI.' Post,p, 521.

AMORTIZED PROPERTY.—

(1) IN GENERAL.—Section 48(a) (relating to definition of section 38 property) is amended by adding after paragraph (7) (as added by section 103 of this Act) the following new paragraph: "'(8) AMORTIZED PROPERTY.—Any property with respect to which an election under section 167(k), 169, 184, 187, or 188 applies shall not be treated as section 38 property. In the case of any property to which section 169 applies, the preceding sentence shall apply only to so much of the adjusted basis of the property as (after the application of section 169(f)) constitutes the amortizable basis for purposes of section 169." (2) CONFORMING AMENDMENT.—Section 169 (relating to amortization of pollution control facilities) is amended by striking out subsection (h). (g) EAILROAD TRACK.—Section 48(a) (relating to definition of section 38 property) is amended by inserting after paragraph (8) (as added by subsection (f)) the following new paragraph: "(9) RAILROAD TRACK.—In the case of a railroad (including a railroad switching or terminal company) which uses the retirement-replacement method of accounting for depreciation of its

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