Page:United States Statutes at Large Volume 96 Part 1.djvu/484

 96 STAT. 442

PUBLIC LAW 97-248—SEPT. 3, 1982 (6) UNDERPAYMENTS OF TAX FOR 1982.—No addition to the tax

shall be made under section 6655 of the Internal Revenue Code of 1954 (relating to failure by corporation to pay estimated income tax) for any period before October 15, 1982, with respect to any underpayment of estimated tax by a taxpayer with respect to any tax imposed by chapter 1 of such Code, to the extent that such underpayment was created or increased by any provision of this section.

26 USC 6655.

SEC.

209. REPEAL OF LEASING; SPECIAL RULE FOR LEASES WITH ECONOMIC SUBSTANCE.

(a) SPECIAL RULE FOR LEASES WITH ECONOMIC SUBSTANCE.—Para-

95 Stat. 204.

graph (8) of section 168(f) (relating to special rules for leasing) is amended to read as follows: "(8) SPECIAL RULES FOR FINANCE LEASES.—

"(A) IN GENERAL.—For purposes of this title, except as provided in subsection (i), in the case of any agreement with respect to any finance lease property, the fact that— "(i) a lessee has the right to purchsise the property at a fixed price which is not less than 10 percent of the original cost of the property to the lessor, or (ii) the property is of a type not readily usable by any person other than the lessee, shall not be taken into account in determining whether such agreement is a lease. "(B) FINANCE LEASE PROPERTY DEFINED.—For purposes of

this section— "(i) IN GENERAL.—The term 'finance lease property' means recovery property which is subject to an agreement which meets the requirements of subparagraph (C) and— "(I) which is new section 38 property of the lessor, which is leased within 3 months after such property was placed in service, and which, if acquired by the lessee, would have been new section 38 property of the lessee, or "(II) which was new section 38 property of the lessee, which is leased within 3 months after such property is placed in service by the lessee, and with respect to which the adjusted basis of the lessor does not exceed the adjusted basis of the lessee at the time of the lease. "(ii) ONLY 40 PERCENT OF THE LESSEE'S PROPERTY MAY BE TREATED AS QUALIFIED.—The cost basis of all finance

lease property (determined without regard to this clause)— "(I) which is placed in service during any calendar year beginning before January 1, 1986, and "(II) with respect to which the taxpayer is a lessee, shall not exceed an amount equal to 40 percent of the cost basis of the taxpayer's qualified base property placed in service during such calendar year. "(iii) ALLOCATION OF DISQUAUFIED BASIS.—The cost basis not treated as finance lease property under clause (ii) shall be allocated to finance lease property for such calendar year (determined without regard to clause (ii))

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