622
PUBLIC LAW 2&7-AUG. 15, 1953
[67 S T A T.
" (e) DETERMINATION OF ADJUSTED BASIS.— "(1) ORIGINAL OWNERS.—For the purpose
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26 USC 113.
26 USC 23.
of subsection (a) (1).. . . " (A) in determining the adjusted basis of any grain storage facility, the construction, reconstruction, or erection of which was begun before January 1, 1953, there shall be included only so much of the amount of the adjusted basis (computed without regard to this subsection) as is properly attributable to such construction, reconstruction, or erection after December 31, 1952, and " (B) in determining the adjusted basis of any facility which is a grain storage facility within the meaning of the second sentence of subsection (d), there shall be included only so much of the amount otherwise included in such basis as is properly attributable to the alteration or remodeling. If any existing grain storage facility as defined in the first sentence of subsection (d) is altered or remodeled as provided in the second sentence of subsection (d), the expenditures for such remodeling or alteration shall not be applied in adjustment of the basis of such existing facility but a separate basis shall be computed in respect of such facility as if the part altered or remodeled were a new and separate grain storage facility. "(2) SUBSEQUENT OWNERS.—For the purpose of subsection (a) (2), the adjusted basis of any grain storage facility shall be whichever of the following amounts is the smaller: (A) The basis (unadjusted) of such facility for the purposes of this section in the hands of the transferor, donor, or grantor, adjusted as if such facility in the hands of the taxpayer had a substitute basis within the meaning of section 113(b)(2)(A), or (B) so much of the adjusted basis (for determining gain) of the facility in the hands of the taxpayer (as computed without regard to this subsection) as is properly attributable to construction, reconstruction, or erection after December 31, 1952. "(f) DEPRECIATION DEDUCTION.—If the adjusted basis of the grain storage facility (computed without regard to subsection (e) (exceeds the adjusted basis computed under subsection (e), the deduction provided by section 23(1) shall, despite the provisions of subsection (a) (3) of this section, be allowed with respect to such grain storage facility as if the adjusted basis for the purpose of such deduction were an amount equal to the amount of such excess. " (g) L I F E T E N A N T AND REMAINDERMAN.—In the case of property held by one person for life with remainder to another person, the amortization deduction provided in subsection (a) shall be computed as if the life tenant were the absolute owner of the property and shall be allowed to the life tenant." (b) TECHNICAL AMENDMENTS.—
26 USC 23.
(1) Section 23(t) is hereby amended to read as follows: " (t) AMORTIZATION DEDUCTION.—The deduction for amortization
26 USC 172. 26 USC 190.
provided in sections 124,124A, and 124B." (2) Section 1Y2 is hereby amended by striking out "of emergency facilities". (3) Section 190 is hereby amended by inserting after "emerency facilities" the following: "or grain storage facilities". EFFECTIVE DATE.—The amendments made by subsections (a) and (b) shall apply only with respect to taxable years ending after the date of the enactment of this Act. . . .,. - , .
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