Page:United States Statutes at Large Volume 100 Part 3.djvu/383
PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2191
"(i) the numerator of which is the total floor space of the low-income units in such building, and "(ii) the denominator of which is the total floor space of the residential rental units (whether or not occupied) in such building. "(2) QuAUFiED LOW-INCOME BUILDING.—The term 'qualified low-income building' means any building— "(A) which at all times during the compliance period with respect to such building is part of a qualified low-income housing project, and "(B) to which the amendments made by section 201(a) of the Tax Reform Act of 1986 apply. "(d) EuGiBLE BASIS.—For purposes of this section— "(1) NEW BUILDINGS.—The eligible basis of a new building is its adjusted basis. "(2) EXISTING BUILDINGS.—
"(A) IN GENERAL.—The eligible basis of an existing building is— "(i) in the case of a building which meets the requirements of subparagraph (B), the sum of— "(I) the portion of its adjusted basis attributable to its acquisition cost, plus "(II) amounts chargeable to capital account and incurred by the taxpayer (before the close of the 1st taxable year of the credit period for such building) for property (or additions or improvements to property) of a character subject to the allowance for depreciation, and "(ii) zero in any other case. "(B) REQUIREMENTS.—A building meets the requirements of this subparagraph if— "(i) the building is acquired by purchase (as defined in section 179(d)(2)), "(ii) there is a period of at least 10 years between the date of its acquisition by the taxpayer and the later of— "(I) the date the building was last placed in service, or "(II) the date of the most recent nonqualified substantial improvement of the building, and "(iii) the building wgis not previously placed in service by the taxpayer or by any person who was a related person with respect to the taxpayer as of the time previously placed in service. "(C) ACQUISITION COST.—For purposes of subparagraph (A),
the cost of any building shall not include so much of the basis of such building as is determined by reference to the basis of other property held at any time by the person acquiring the building. "(D) SPECIAL RULES FOR SUBPARAGRAPH (B).— "(i) NONQUAUFIED SUBSTANTIAL IMPROVEMENT.—For
poses of subparagraph (B)(ii)— "(I) IN GENERAL.—The term 'nonqualified substantial improvement' means any substantial improvement if section 167(k) was elected with respect to such improvement or section 168 (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986) applied to such improvement.