95 STAT. 220
PUBLIC LAW 97-34—AUG. 13, 1981 "(1) SECTION 179 PROPERTY.—For purposes of this section, the term 'section 179 property' means any recovery property which is section 38 property and which is acquired by purchase for use in a trade or business. "(2) PURCHASE DEFINED.—For purposes of paragraph (1), the
term 'purchase' means any acquisition of property, but only if— "(A) the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of losses under section 267 or 707(b) (but, in applying section 267 Oo) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants), "(B) the property is not acquired by one component member of a controlled group from another component member of the same controlled group, and "(C) the basis of the property in the hands of the person acquiring it is not determined— "(i) in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or "(ii) under section 1014(a) (relating to property acquired from a decedent). "(3) COST.—For purposes of this section, the cost of property does not include so much of the basis of such property as is determined by reference to the basis of other property held at any time by the person acquiring such property. "(4) SECTION NOT TO APPLY TO ESTATES AND TRUSTS.—This
section shall not apply to estates and trusts. "(5) SECTION NOT TO APPLY TO CERTAIN NONCORPORATE LES-
Post, p. 228.
SORS.—This section shall not apply to any section 179 property purchased by any person described in section 46(e)(3) unless the credit under section 38 is allowable with respect to such person for such property (determined without regard to this section). "(6) DOLLAR LIMITATION OF CONTROLLED GROUP.—For purposes
26 USC 1245.
of subsection (b) of this section— "(A) all component members of a controlled group shall be treated as one taxpayer, and "(B) the Secretary shall apportion the dollar limitation contained in subsection (b)(1) among the component members of such controlled group in such manner as he shall by regulations prescribe. "(7) CONTROLLED GROUP DEFINED.—For purposes of paragraphs (2) and (6), the term 'controlled group' has the meaning assigned to it by section 1563(a), except that, for such purposes, the phrase 'more than 50 percent' shall be substituted for the phrase 'at least 80 percent' each place it appears in section 1563(a)(1). "(8) DOLLAR LIMITATION IN CASE OF PARTNERSHIPS.—In the case of a partnership, the dollar limitation contained in subsection (b)(1) shall apply with respect to the partnership and with respect to each partner. "(9) COORDINATION WITH SECTION 38.—No credit shall be allowed under section 38 with respect to any amount for which a deduction is allowed under subsection (a)." (b) RECAPTURE RULE.—Subsection (a) of section 1245 (relating to gains from dispositions from certain depreciable property) is amended—
�
