PUBLIC LAW 99-514—OCT. 22, 1986 "(1)
ACCELERATED COST RECOVERY DEDUCTION.—Section
100 STAT. 2141 168
shall apply with respect to that portion of the basis of any property not taken into account under section 169 by reason of subsection (a)(5)." (C) Section 291(e)(2) is amended by striking out ", 'section 1245 recovery property'," and ", section 1245(a)(5),". (6) SECTION 312.—Paragraph (4) of section 312(k) is amended by striking out the last sentence. (7) SECTION 465.— (A) Subparagraph (C) of section 46503)(3) is amended to read as follows: "(C) RELATED PERSON.—For purposes of this subsection, a person (hereinafter in this paragraph referred to as the 'related person') is related to any person if— "(i) the related person bears a relationship to such person specified in section 267(b) or section 707(b)(1), or "(ii) the related person and such person are engaged in trades or business under common control (within the meaning of subsections (a) and (b) of section 52). For purposes of clause (i), in applying section 267(b) or 7070t>Xl), '10 percent' shall be substituted for '50 percent'." (B) Section 46(c)(8)(D)(v) is amended by striking out "section 168(e)(4)" and inserting in lieu thereof "section 465(b)(3)(C)". (C) Section 4162(c)(3) is amended by striking out "section 168(e)(4)(D)" and inserting in lieu thereof "section 465(b)(3)(C)". (8) SECTION 467.— (A) Paragraph (3) of section 467(e) is amended to read as follows: "(3) STATUTORY RECOVERY PERIOD.— "(A) IN GENERAL.— The statutory recovery "In the case of: period is: 3-year property 3 years 5-year property 5 years 7-year property 7 years 10-year property 10 years 15-year and 20-year property 15 years Residential rental property and nonresidential real property 19 years. "(B) SPECIAL RULE FOR PROPERTY NOT DEPRECIABLE UNDER
SECTION 168.—In the case of property to which section 168 does not apply, subparagraph (A) shall be applied as if section 168 applies to such property." (B) Paragraph (5) of section 467(e) (defining related person) is amended by striking out "section 168(e)(4)(D)" and inserting in lieu thereof "section 4650t))(3)(C)". (9) SECTION 5 14.—Subclause (II) of section 514(c)(9)(B)(vi) (relating to real property acquired by a qualified organization) is amended by striking out "section 168(j)(9)" and inserting in lieu thereof "section 168(h)(6)". (10) SECTION 751.—Subsection (c) of section 751 (defining unrealized receivables) is amended by striking out "section 1245 recovery property (as defined in section 1245(a)(5)),". (11) SECTION 1245.—
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