Page:United States Statutes at Large Volume 98 Part 1.djvu/763

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 715

"(1) LESSOR'S CREDITS AND DEDUCTIONS NOT AFFECTED.—This

section shall not apply to any listed property leased or held for leasing by any person regularly engaged in the business of leasing such property. "(2) LESSEE'S DEDUCTIONS REDUCED.—For purposes of determining the amount allowable as a deduction under this chapter for rentals or other payments under a lease for a period of 30 days or more of listed property, only the allowable percentage of such payments shall be taken into account. "(3) ALLOWABLE PERCENTAGE.—For purposes of paragraph (2), the allowable percentage shall be determined under tables prescribed by the Secretary. Such tables shall be prescribed so that the reduction in the deduction under paragraph (2) is substantially equivalent to the applicable restrictions contained in subsections (a) and (b). "(4) LEASE TERM.—In determining the term of any lease for purposes of paragraph (2), the rules of section 168(j)(6)(B) shall Ante, p. 509. apply. "(5) LESSEE RECAPTURE.—Under regulations prescribed by the Secretary, rules similar to the rules of subsection (b)(3) shall apply to any lessee to which paragraph (2) applies. "(d) DEFINITIONS AND SPECIAL RULES.—For purposes of this section— "(1) COORDINATION WITH SECTION 179.—Any deduction allowable under section 179 with respect to any listed property shall be subject to the limitations of subsections (a) and (b) in the same manner as if it were a recovery deduction allowable under section 168. "(2) SUBSEQUENT DEPRECIATION DEDUCTIONS REDUCED FOR DEDUCTIONS ALLOCABLE TO PERSONAL USE.—Solely for purposes of

determining the amount of the recovery deduction for subsequent taxable years, if less than 100 percent of the use of any listed property during any taxable year is not use described in section 168(c)(1) (defining recovery property), all of the use of such property during such taxable year shall be treated as use so described. "(3) DEDUCTIONS OF EMPLOYEE.—

"o r i J

"(A) IN GENERAL.—Any employee use of listed property shall not be treated as use in a trade or business for purposes of determining the amount of any credit allowable under section 38 to the employee or the amount of any recovery deduction allowable to the employee unless such use is for the convenience of the employer and required as a condition of employment. "(B) EMPLOYEE USE.—For purposes of subparagraph (A), the term 'employee use' means any use in connection with the performance of services as an employee.

Post, p. 827.

"(4) LISTED PROPERTY.—

"(A) IN GENERAL.—Except as provided in subparagraph -^ Ok i (B), the term 'listed property' means— y»« "(i) any passenger automobile, "(ii) any other property used as a means of transportation, "(iii) any property of a type generally used for purposes of entertainment, recreation, or amusement, "(iv) any computer or peripheral equipment (as defined in section 168(j)(5)(D)), and Ante, p. 509.

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