PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 539
- (1) IN GENERAL. —The basis on which exhaustion, wear
and tear, and obsolescence are to be allowed in respect of any property shall be the adjusted basis provided in section 1011, for the purpose of determining the gain on the sale or other disposition of such property. "(2) SPECIAL RULE FOR PROPERTY SUBJECT TO LEASE.—If any property is acquired sublect to a lease— "(A) no portion of the adjusted basis shall be allocated to the leasehold interest, and "(B) the entire adjusted basis shall be taken into account in determining the depreciation deduction (if any) with respect to the property subject to the lease." (c) AMENDMENTS TO SECTION 1253.—Subsection (d) of section 1253 is amended by striking paragraphs (2), (3), (4), and (5) and 26 USC 1253. inserting the following: "(2) OTHER PAYMENTS.— Any amount paid or incurred on account of a transfer, sale, or other disposition of a franchise, trademark, or trade name to which paragraph (1) does not apply shall be treated as an amount chargeable to capital account. "(3) RENEWALS, ETC. —For purposes of determining the term of a transfer agreement under this section, there shall be taken into account all renewal options (and any other period for which the parties reasonably expect the agreement to be renewed). " (d) AMENDMENT TO SECTION 848.—Subsection (g) of section 848 is amended by striking "this section" and inserting "this section or section 197". (e) AMENDMENTS TO SECTION 1060. — (1) Paragraph (1) of section 106(Kb) is amended by striking "goodwill or going concern value" and inserting "section 197 intangibles". (2) Paragraph (1) of section 106(Xd) is amended by striking "goodwill or going concern value (or similar items)" cuid inserting "section 197 intangibles". (f) TECHNICAL AND CONFORMING AMENDMENTS. — (1) Subsection (g) of section 167 (as redesignated by subsection (b)) is amended to read as follows: "(g) CROSS REFERENCES. — "(1) For additional rule applicable to depreciation of improvements in the case of mines, oil and gas wells, other natural deposits, and timber, see section 611. "(2) For amortization of goodwill and certain other intangibles, see section 197." (2) Subsection (f) of section 642 is amended by striking "section 169" and inserting "sections 169 and 197". (3) Subsection (a) of section 1016 is amended by striking paragraph (19) and by redesignating the following paragraphs accordingly. (4) Subparagraph (C) of section 1245(a)(2) is amended by striking "193, or 1253(d)(2) or (3)" and inserting "or 193". (5) Paragraph (3) of section 1245(a) is amended by striking "section 185 or 1253(d)(2) or (3)". (6) The table of sections for part VI of subchapter B of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 197. Amortization of goodwill and certain other intangibles.".
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