107 STAT. 536 PUBLIC LAW 103-66—AUG. 10, 1993 "(A) IN GENERAL.— In the case of any section 197 intangible transferred in a transaction described in subparagraph (B), the transferee shall be treated as the transferor for purposes of applying this section with respect to so much of the a4justed basis in the hands of the transferee as does not exceed the ac^usted basis in the hands of the transferor. "(B) TRANSACTIONS COVERED. —The transactions described in this subparagraph are— "(i) any transaction described in section 332, 351, 361, 721, 731, 1031, or 1033, and "(ii) any transaction between members of the same affiliated group during any taxable year for which a consolidated return is made by such group. •*(3) TREATMENT OF AMOUNTS PAID PURSUANT TO COVENANTS NOT TO COMPETE, ETC. —Any amount paid or incurred pursuant to a covenant or arrangement referred to in subsection (d)(1)(E) shall be treated as an amount chargeable to capital account. " (4) TREATMENT OF FRANCHISES, ETC.— "(A) FRANCHISE.— The term 'franchise' has the meaning given to such term by section 1253(b)(l). "(B) TREATMENT OF RENEWALS. — Any renewal of a franchise, trademark, or trade name (or of a license, a permit, or other right referred to in subsection (d)(l)(D)) shall be treated as an acquisition. The preceding sentence shall only apply with respect to costs incurred in connection with such renewal. "(C) CERTAIN AMOUNTS NOT TAKEN INTO ACCOUNT. — Any amount to which section 1253(d)(l) applies shall not be taken into account under this section. "(5) TREATMENT OF CERTAIN REINSURANCE TRANSACTIONS.— In the case of any amortizable section 197 intangible resulting from an assumption reinsurance transaction, the amount taken into account as the adjusted basis of such intangible under this section shall be the excess of— "(A) the amount paid or incurred by the acquirer under the assumption reinsurance transaction, over "(B) the amount required to be capitalized under section 848 in connection with such transaction. Subsection (b) shall not apply to any amount required to be capitalized under section 848. "(6) TREATMENT OF CERTAIN SUBLEASES.—For purposes of this section, a sublease shall be treated in the same manner as a lease of the underlying property involved. "(7) TREATMENT AS DEPRECIABLE.— For purposes of this chapter, any amortizable section 197 intangible shall be treated as property which is of a character subject to the allowance for depreciation provided in section 167. "(8) TREATMENT OF CERTAIN INCREMENTS IN VALUE. —This section shall not apply to any increment in value if, without regard to this section, such increment is properly taken into account in determining the cost of property which is not a section 197 intangible. "(9) ANTI-CHURNING RULES.— For purposes of this section— "(A) IN GENERAL. —The term 'amortizable section 197 intangible' shall not include any section 197 intangible which is described in subparagraph (A) or (B) of subsection
�
