Page:United States Statutes at Large Volume 90 Part 2.djvu/292

 90 STAT. 1760

PUBLIC LAW 94-455—OCT. 4, 1976 SEC. 1702. AMORTIZATION OVER 50-YEAR PERIOD OF RAILROAD GRADING AND TUNNEL BORES PLACED IN SERVICE BEFORE 1969.

26 USC 185.

(a) IN GENERAL.—Section 185 (relating to amortization of railroad grading and tunnel bores) is amended by redesignating subsections (d), (e), (f), (g), and (h) as subsections (f), (g), (h), (i),and (j), respectively, and by inserting after subsection (c) the following new subsections: " (d) ELECTION W I T H RESPECT TO PRE-1969 PROPERTY.—^A taxpayer

Filing requirement.

may, lor any taxable year beginning a:^er December 31, 1974, elect for purposes of this section to treat the term 'qualified railroad grading and tunnel bores' as including pre-1969 railroad grading and tunnel bores. An election under this subsection shall be made by filing with I\^Q Secretary, in such manner, in such form, and within such time, as the Secretary may by regulations prescribe, a statement of such election. The election under this subsection shall remain in effect for all taxable years, after the first year for which it is effective, for which an election under subsection (c) is effective. The election under this subsection shall apply to all pre-1969 railroad grading and tunnel bores of the taxpayer, unless, on application by the taxpayer, the Secretary permits him, subject to such conditions as the Secretary deems necessary, to revoke such election. "(e) ADJUSTED BASIS FOR PRE-1969 RAILROAD GRADING AND TUNNEL BORES.—

" (1) IN GENERAL.—The adjusted basis of any pre-1969 railroad grading and tunnel bore shall be determined under this subsection. " (2) PROPERTY ACQUIRED OR CONSTRUCTED AFTER FEBRUARY 28, 1913.—

"(A) In the case of pre-1969 railroad grading and tunnel bores— " (i) acquired by the taxpayer after February 28, 1913, or "(ii) the construction of which was completed by the taxpayer after February 28, 1913, the adjusted basis of such property shall be equal to the adjusted basis (for determining gam) of such property in the hands of the taxpayer. " (B) In the case of property described in subparagraph (A)(i)"(i) which was in existence on February 28, 1913, "(ii) for which the taxpayer has a substituted basis, and "(iii) such substituted basis for which would, but for the provisions of this section, be determined under section 1053, then the adjusted basis of such property shall be determined as if such property were property described in paragraph (3)(A). "(3) PROPERTY ACQUIRED OR CONSTRUCTED BEFORE MARCH i, 1913.—

" (A) In the case of pre-1969 railroad grading and tunnel bores— i) acquired by the taxpayer before March 1, 1913, or ii) "(ii) the construction of which was completed by the taxpayer before March 1, 1913,

�