100 STAT. 2142
PUBLIC LAW 99-514—OCT. 22, 1986 (A) Paragraph (1) of section 1245(a) (relating to gain from dispositions of certain depreciable property) is amended by striking out "during a taxable year beginning after December 31, 1962, or section 1245 recovery property is disposed of after December 31, 1980,". (B) Paragraph (2) of section 1245(a) (defining recomputed basis) is amended to read as follows: "(2) RECOMPUTED BASIS.—For purposes of this section— "(A) IN GENERAL.—The term 'recomputed basis' means, with respect to any property, its adjusted basis recomputed by adding thereto all adjustments reflected in such adjusted basis on account of deductions (whether in respect of the same or other property) allowed or allowable to the taxpayer or to any other person for depreciation or amortization. "(B)
TAXPAYER MAY ESTABLISH AMOUNT ALLOWED.—For
purposes of subparagraph (A), if the taxpayer can establish by adequate records or other sufficient evidence that the amount allowed for depreciation or amortization for any period was less than the amount allowable, the amount added for such period shall be the amount allowed. "(C)
CERTAIN DEDUCTIONS TREATED AS AMORTIZATION.—
Any deduction allowable under section 179,190, or 193 shall be treated as if it were a deduction allowable for amortization." (C) Paragraph (3) of section 1245(a) (defining section 1245 property) is amended by striking out subparagraph (C) and by redesignating subparagraphs (D), (E), and (F) as subparagraphs (C), (D), and (E), respectively. (D) Subsection (a) of section 1245 is amended by striking out paragraphs (5) and (6). (12) SECTION 4162.—Paragraph (3) of section 4162(c) (defining related person) is amended by striking out "section 168(e)(4)(D)" and inserting in lieu thereof "section 4650t))(3)(C)". (13) SECTION 6111.—Clause (ii) of section 6111(c)(3)(B) (relating to certain borrowed amounts excluded) is amended by striking out "section 168(e)(4)" and inserting in lieu thereof "section 465(b)(3)(C)". (14) SECTION 7701.— (A) Subparagraph (A) of section 7701(e)(4) is amended by striking out "section 168(j)" and inserting in lieu thereof "section 168(h)". (B) Paragraph (5) of section 7701(e) (relating to exception for certain low-income housing) is amended by striking out "low-income housing (section 168(c)(2)(F))" and inserting in lieu thereof "property described in clause (i), (ii), (iii), or (iv) of section 1250(a)(l)(B) (relating to low-income housing)". SEC. 202. EXPENSING OF DEPRECIABLE ASSETS.
(a) LIMITATIONS ON EXPENSING.—Subsection (h) of section 179
(relating o election to expense certain depreciable assets) is amended to read as follows: "(b) LIMITATIONS.— "(1) DOLLAR LIMITATION.—The
aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $10,000.
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