Page:United States Statutes at Large Volume 95.djvu/249

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 223

property (to the extent of the amount which may be treated as ordinary income under this section) and then to the portion of the building or other structure which is not section 1245 recovery property." (d) QuAUFiED LEASED PROPERTY.—Subsection (a) of section 1245 26 USC 1245. (relating to recomputed basis) is amended by adding at the end thereof the following new paragraph: "(6) SPECIAL RULE FOR QUALIFIED LEASED PROPERTY.—In any

case in which— "(A) the lessor of qualified leased property (within the meaning of section 168(f)(8)(D)) is treated as the owner of such property for purposes of this subtitle under section 168(f)(8), and "(B) the lessee acquires such property, the recomputed basis of the lessee under this subsection shall be determined by taking into account any adjustments which would be taken into account in determining the recomputed basis of the lessor." (e) APPLICATION WITH SECTION 1250.—Subsection (d) of section 1250 (relating to exceptions and limitations) is amended by adding at the end thereof the following new paragraph: "(11) SECTION 1245 RECOVERY PROPERTY.—Subsection (a) shall not apply to the disposition of property which is section 1245 recovery property (as defined in section 1245(a)(5))." SEC. 205. MINIMUM TAX TREATMENT. (a) IN GENERAL.—Subsection (a) of section 57 (defining items of tax preference) is amended by inserting immediately after paragraph (11) the following new paragraph: "(12) ACCELERATED COST RECOVERY DEDUCTION.—

"(A) IN GENERAL.—With respect to each recovery property (other than 15-year real property) which is subject to a lease, the amount (if any) by which the deduction allowed under section 168(a) for the taxable year exceeds the deduction which would have been allowable for the taxable year had the property been depreciated using the straight-line method (with a half-year convention and without regard to salvage value) and a recovery period determined in accordance with the following table:

"In the case of: 3-year property 5-year property 10-year property 15-year public utility property

The recovery period is: 5 years. 8 years. 15 years. 22 years.

"(B) 15-YEAR REAL PROPERTY.—With respect to each recovery property which is 15-year real property, the amount (if any) by which the deduction allowed under section 168(a) for the taxable year exceeds the deduction which would have been allowable for the taxable year had the property been depreciated using a 15-year period and the straight-line method (without regard to salvage value).

Ante, p. 203.

26 USC 1250.

Ante, p. 222. 26 USC 57.

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