Page:United States Statutes at Large Volume 98 Part 1.djvu/765

 PUBLIC LAW 98-369—JULY 18, 1984 -'

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98 STAT. 717

spect to the taxpayer (as defined in section 416(i)(l)(B)(i)). "(ii) RELATED PERSON.—The term 'related person' means any person related to the taxpayer (within the meaning of section 267(b)). "(7) AUTOMOBILE PRICE INFLATION ADJUSTMENT,—

"(A) IN GENERAL.—In the case of any passenger automobile, subsection (a) shall be applied by increasing each dollar amount contained in such subsection by the automobile price inflation adjustment for the calendar year in which such automobile is placed in service. Any increase under the preceding sentence shall be rounded to the nearest multiple of $100 (or if the increase is a multiple of $50, such increase shall be increased to the next higher multiple of $100). "(B) AUTOMOBILE PRICE INFLATION ADJUSTMENT.—For pur-

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poses of this paragraph— "(i) IN GENERAL.—The automobile price inflation adjustment for any calendar year is the percentage (if any) by which— "(I) the CPI automobile component for October of the preceding calendar year, exceeds "(II) the CPI automobile component for October of 1983. In the case of calendar year 1984, the automobile price ^ inflation adjustment shall be zero. '^' "(ii) CPI AUTOMOBILE COMPONENT.—The term 'CPI automobile component' means the automobile component of the Consumer Price Index for All Urban Con**'-^ sumers published by the Department of Labor. "(8) UNRECOVERED BASIS.—For purposes of subsection (a)(2), the term 'unrecovered basis' means the excess (if any) of— "(A) the unadjusted basis (as defined in section 168(d)(1)(A)) of the passenger automobile, over "(B) the amount of the recovery deductions which would have been allowable for taxable years in the recovery period determined after the application of subsection (a) and as if all use during the recovery period were use described in section 168(c)(1). "(9) ALL TAXPAYERS HOLDING INTERESTS IN PASSENGER AUTOMO-

BILE TREATED AS 1 TAXPAYER.—All taxpayers holding interests in any passenger automobile shall be treated as 1 taxpayer for purposes of applying subsection (a) to such automobile, and the limitations of subsection (a) shall be allocated among such taxpayers in proportion to their interests in such automobile, "(10) SPECIAL RULE FOR PROPERTY ACQUIRED IN NONRECOGNI-

TION TRANSACTIONS.—For purposes of subsection (a)(2), notwithstanding any regulations prescribed under section 168(f)(7), any property acquired in a nonrecognition transaction shall be treated as a single property originally placed in service in the taxable year in which it was placed in service after being so acquired. "(e) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations with respect to items properly included in, or excluded from, the adjusted basis of any listed property."

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