Page:United States Statutes at Large Volume 95.djvu/238

 95 STAT. 212

PUBLIC LAW 97-34—AUG. 13, 1981 a time to maximize the deduction allowle under subsection (a). "(B) REAL PROPERTY.—

26 USC 167.

"(i) IN GENERAL.—Except as provided in subparagraph (O, in the case of 15-year real property which, during the taxable year, is predominantly used outside the United States, the recovery deduction for the taxable year shall be, in lieu of the amount determined under subsection (b), the amount determined by applying to the unadjusted basis of such property tibe applicable percentage determined under tables prescribed by the Secretary. For purposes of the preceding sentence in prescribing such tables, the Secretary shall— "(I) assign to the property described in this subparagraph a 35-year recovery period; and "(11) assign percentages (taking into account the next to the last sentence of subsection (b)(2)(A)) determined in accordance with use of the method of depreciation described in section 167(j)(l)(B), switching to the method described in section 167(b)(l) at a time to maximize the deduction allowable under subsection (a), "(ii) SPECIAL RULE FOR DISPOSITION.-In the case of a disposition of 15-year real property described in clause (i), subsection (b)(2)(B) shall apply. "(C) ELECTION OP DIFFERENT RECOVERY PERCENTAGE.— "(i) GENERAL RULE.—The taxpayer may elect, with

respect to one or more classes of recovery property described in this paragraph, to determine the applicable percentage under this paragraph by use of the straightline method over the recovery period determined in accordance with the following table:

The taxpayer may elect "In the case of: a recovery period of: d-year property The present class life, 5 or 12 years. 5-year property The present class life, 12 or 25 years. 10-year property The present class life, 25 or 35 years. 15-year real property 85 or 45 years. 15-year public utility prop- The present class life, 35 or 45 years, erty.

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