Page:United States Statutes at Large Volume 96 Part 1.djvu/489

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 447

(c) DEFINITION OF N E W SECTION 38 PROPERTY.—Subsection (b) of

section 48 (defining new section 38 property) is amended by adding at the end thereof the following new sentence: "For purposes of determining whether section 38 property subject to a lease is new section 38 property, such property shall be treated as originally placed in service not earlier than the date such property is used under the lease but only if such property is leased within 3 months after such property is placed in service." (d) EFFECTIVE DATES.—

26 USC 48.

26 USC 168 note.

(1) SUBSECTION (a).—

(A) IN GENERAL.—Except as provided in subparagraph (B) and paragraph (2), the amendments made by this section shall apply to agreements entered into after December 31, 1983. (B) SPECIAL RULE FOR FARM PROPERTY AGGREGATING $150,000 OR LESS.—

(i) IN GENERAL.—The amendments made by subsection (a) shall also apply to any agreement entered into after July 1, 1982, and before January 1, 1984, if the property subject to such agreement is section 38 property which is used for farming purposes (within the meaning of section 2032A(e)(5)). (ii) $150,000 UMiTATiON.—The provisions of clause (i) shall not apply to any agreement if the sum of— (I) the cost basis of the property subject to the agreement, plus (II) the cost basis of any property subject to an agreement to which this subparagraph previously applied, which was entered into during the same calendar year, and with respect to which the lessee was the lessee of the agreement described in subclause (I) (or any related person within the meaning of section 168(e)(4)(D)), exceeds $150,000. For purposes of subclause (II), in the case of an individual, there shall not be taken into account any agreement of any individual who is a related person involving property which is used in a trade or business of farming of such related person which is separate from the trade or business of farming of the lessee described in subclause (II). (2)

SPECIAL

RULE

FOR DEFINITION

OF NEW SECTION

38

PROPERTY.—The amendment made by subsection (c) shall apply to property placed in service after December 31, 1983. SEC. 210. MOTOR VEHICLE OPERATING LEASES.

(a) IN GENERAL.—In the case of any qualified motor vehicle agreement, the fact that such agreement contains a terminal rental adjustment clause shall not be taken into account in determining whether such agreement is a lease. (b) DEFINITIONS.—For purposes of this section— (1) QUALIFIED MOTOR VEHICLE AGREEMENT.—The term "qualified motor vehicle agreement" means any agreement with respect to a motor vehicle (including a trailer)— (A) which was entered into before— (i) the enactment of any law, or (ii) the publication by the Secretary of the Treasury or his delegate of any regulation.

26 USC 168 note.

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