Page:United States Statutes at Large Volume 54 Part 1.djvu/1033

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54 STAT.] 76TH CONG. , 3D SESS.-CH. 757-OCT. 8, 1940 "SEC. 124. AMORTIZATION DEDUCTION. "(a) GENERAL RTJLE.- Every corporation, at its election, shall be entitled to a deduction with respect to the amortization of the adjusted basis of any emergency facility (as defined in subsection (e)), based on a period of sixty months. Such amortization deduc- tion shall be an amount, with respect to each month of such period within the taxable year, equal to the adjusted basis of the facility at the end of such month divided by the number of months (inlud- ing the month for which the deduction is computed) remaining in the period. Such adjusted basis at the end of the month shall be computed without regard to the amortization deduction for such month. The amortization deduction above provided with respect to any month shall, except to the extent provided in subsection (g) of this section, be in lieu of the deduction with respect to such facility for such month provided by section 23 (1), relating to exhaustion, wear and tear, and obsolescence. The sixty-month period shall begin as to any emergency facility, at the election of the tax- payer, with the month following the month in which the facility was completed or acquired, or with the succeeding taxable year. "(b) ELECTION OF AMORTIZATION.- The election of the taxpayer to take the amortization deduction and to begin the sixty-month period with the month following the month in which the facility was completed or acquired shall (except as provided in subsection (d) (3)) be made only by a statement to that effect in its return for the taxable year in which the facility was completed or acquired. Its election to take the amortization deduction and to begin such period with the taxable year succeeding such year shall be made only by a statement to that effect in its return for such succeeding taxable year. "(c) TERMINATION OF AMORTIZATION D)EDUTTION. - A taxpayer which has elected under subsection (b) to take the amortization deduction provided in subsection (a) may, at any time after mak- ing such election, discontinue the amortization deductions with respect to the remainder of the amortization period, such discontinuance to begin as of the beginning of any month specified by the taxpayer in a notice in writing filed with the Commissioner before the begin- ning of such month. The deduction provided under section 23 (1) shall be allowed, beginning with the first month as to which the amortization deduction is not applicable, and the taxpayer shall not (except as provided in subsection (d)) be entitled to any further amortization deductions with respect to such emergency facility. "(d) TERMINATION OF AMORTIZATION PERIOD.- "(1) If the President has proclaimed the ending of the emer- gency period (as defined in subsection (e)), or if the Secretary of War or the Secretary of the Navy has, in accordance with regulations prescribed by the President, certified to the Commis- sioner that an emergency facility ceased, on the date specified in the certificate, to be necessary in the interest of national defense during the emergency period, and if the date of such proclama- tion or the date specified in such certificate occurs within sixty months from the beginning of the amortization period with respect to such emergency facility then the taxpayer may elect (in accordance with paragraph (4) of this subsection) to termi- nate the amortization period with respect to such emergency facility as of the end of the month in which such proclamation was issued or in which occurred the date specified in such certificate, whichever is the earlier. In such case the amortiza- tion period with respect to such facility shall end with the end of such month in lieu of the end of the sixty-month period. 999 Emergency facili- ties. General rule. Pos, p. 1001. 53 Stat. 14 . 26 U. 8. C., Supp. V, 23 (). Election of amorti- zation. Pot, p. 1000 . Termination of amortization deduc- tion. 53 Stat. 14 . 26 U. . C., Supp. v, }23 (). End of emergency period or cessation of emergency facility. Pos, p. 1001. Election by tax- payer.