100 STAT. 2144
PUBLIC LAW 99-514—OCT. 22, 1986 (A) any property which is constructed, reconstructed, or acquired by the taxpayer pursuant to a written contract which was binding on March 1, 1986, (B) property which is constructed or reconstructed by the taxpayer if— (i) the lesser of (I) $1,000,000, or (II) 5 percent of the cost of such property has been incurred or committed by March 1, 1986, and (ii) the construction or reconstruction of such property began by such date, or (C) an equipped building or plant facility if construction has commenced as of March 1, 1986, pursuant to a written specific plan and more than one-half of the cost of such equipped building or facility has been incurred or committed by such date. (2) REQUIREMENT THAT CERTAIN PROPERTY BE PLACED IN SERVICE BEFORE CERTAIN DATE.—
(A) IN GENERAL.—Paragraph (1) and section 204(a) (other than paragraph (8) or (12) thereof) shall not apply to any property unless such property has a class life of at legist 7 years and is placed in service before the applicable date determined under the following table: In the case of property with a class life of: At least 7 but less than 20 years 20 years or more
The applicable date is: January 1, 1989 January 1, 1991.
(B) RESIDENTIAL RENTAL AND NONRESIDENTIAL REAL PROP-
ERTY.—In the case of residential rental property and nonresidential real property, the applicable date is January 1, 1991. (C) CLASS LIVES.—For purposes of subparagraph (A)—
(i) the class life of property to which section 168(g)(3)(B) of the Internal Revenue Code of 1986 (as added by section 201) shall be the class life in effect on January 1, 1986, except that computer-based telephone central office switching equipment described in section 168(e)(3)(B)(iii) of such Code shall be treated as having a class life of 6 years, (ii) property described in section 204(a) shall be treated as having a class life of 20 years, and (iii) property with no class life shall be treated as having a class life of 12 years. (D) SUBSTITUTION OF APPLICABLE DATES.—If any provision
of this Act substitutes a date for an applicable date, this paragraph shall be applied by using such date. (3)
PROPERTY
QUALIFIES
IF SOLD
AND LEASED
BACK
IN 3
MONTHS.—Property shall be treated as meeting the requirements of paragraphs (1) and (2) or section 204(a) with respect to any taxpayer if such property is acquired by the taxpayer from a person— (A) in whose hands such property met the requirements of paragraphs (1) and (2) or section 204(a), or (B) who placed the property in service before January 1, 1987, and such property is leased back by the taxpayer to such person not later than the earlier of the applicable date under para-
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