Page:United States Statutes at Large Volume 96 Part 2.djvu/1007

 PUBLIC LAW 97-448—JAN. 12, 1983

96 STAT. 23(59

determination of whether the acquiring partnership is related to the other partnership shall be made immediately before the event resulting in such termination occurs."; and (B) by adding at the end thereof the following new subparagraphs: "(H) ACQUISITIONS BY REASON OF DEATH.—Subpara-

graphs (A) and (B) shall not apply to the acquisition of any property by the taxpayer if the basis of the property in the hands of the taxpayer is determined under section 1014(a). "(I) SECTION 1245 CLASS PROPERTY ACQUIRED INCIDENTAL TO ACQUISITION OF SECTION 1250 CLASS PROPERTY.—

Under regulations prescribed by the Secretary, subparagraph (B) shall apply (and subparagraph (A) shall not apply) to section 1245 class property which is acquired incidental to the acquisition of section 1250 class property." (lOXA) Subparagraph (D) of section 168(0(8) (relating to special rule for leases), as in effect before the amendments made by the Tax Equity and Fiscal Responsibility Act of 1982, is amended by adding at the end thereof the following new sentence: "Under regulations prescribed by the Secretary, public utility property shall not be treated as qualified leased property unless the requirements of rules similar to the rules of subsection (e)(3) of this section and section 46(f) are met with respect to such property." (B) The amendment made by subparagraph (A) shall apply with respect to property to which the provisions of section 168(f)(8) of the Internal Revenue Code of 1954 (as in effect before the amendments made by the Tax Ekjuity and Fiscal Responsibility Act of 1982) apply, (aa) AMENDMENT RELATED TO SECTION 202.—Subsection (d) of section 179 (relating to election to expense certain business assets) is amended by adding at the end thereof of the following new paragraph: "(10) RECAPTURE IN CERTAIN CASES.—The Secretary shall, by regulations, provide for recapturing the benefit under any deduction allowable under subsection (a) with respect to any property which is not used predominantly in a trade or business at any time before the close of the second taxable year following the taxable year in which it is placed in service by the taxpayer." (b) AMENDMENTS RELATED TO SECTION 205.— (I)(A) The next to the last sentence of section 57(a) is amended by striking out "and (12)" and inserting in lieu thereof "and (12)(A)". (B) The amendment made by subparagraph (A) shall take effect as if included in the amendment made by section 205(b) of the Economic Recovery Tax Act of 1981 but shall not apply to taxable years beginning after December 31, 1982. (2) Paragraph (2) of section 58(f) is amended by striking out "the item of tax preference set forth in section 57(a)(2)" and inserting in lieu thereof "the items of tax preference set forth in paragraphs (2) and (12XB) of section 57(a)". (3) Paragraph (12) of section 57(a) (defining items of tax preference) is amended by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively, and by inserting after subparagraph (B) the following new subparagraph:

26 USC 168. Ante, p. 324.

26 USC 168 note,

95 Stat. 219. 26 USC 179.

95 Stat. 223. 26 USC 57. 26 USC 57 not<}.

26 USC 58.

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