52
INTERNAL REVENUE CODE OF 1954
(1) the construction, reconstruction, or erection of which is completed after December 31, 1953, and then only to that portion of the basis which is properly attributable to such construction, reconstruction, or erection after December 31, 1953, or (2) acquired after December 31, 1953, if the original use of such property commences with the taxpayer and commences after such date. (d) AGREEMENT AS TO U S E F U L L I F E ON W H I C H D E P R E C I A T I O N
R A T E I S BASED.—Where, under regulations prescribed by the Secretary or his delegate, the taxpayer and the Secretary or his delegate have, after the date of enactment of this title, entered into an agreement in writing specifically dealing with the useful life and rate of depreciation of any property, the rate so agreed upon shall be binding on both the taxpayer and the Secretary in the absence of facts or circumstances not taken into consideration in the adoption of such agreement. The responsibility of establishing the existence of such facts and circumstances shall rest with the party initiating the modification. Any change in the agreed rate and useful life specified in the agreement shall not be effective for ta;xable years before the taxable year in which notice in writing by registered mail is served by the party to the agreement initiating such change. (e) CHANGE I N M E T H O D. — I n the absence of an agreement under subsection (d) containing a provision to the contrary, a taxpayer may at any time elect in accordance with regulations prescribed by the Secretary or his delegate to change from the method of depreciation described in subsection (b)(2) to the method described in subsection (b)(1). (f) B A S I S FOR D E P R E C I A T I O N. — The basis on which exhaustion,
wear and tear, and obsolescence are to be allowed in respect of any property shall be the adjusted basis provided in section 1011 for the purpose of determining the gain on the sale or other disposition of such property. (g) L I F E T E N A N T S AND BENEFICIARIES OF TRUSTS AND E STATES. —
In the case of property held by one person for life with remainder to another person, the deduction shall be computed as if the life tenant were the absolute owner of the property and shall be allowed to the life tenant. I n the case of property held in trust, the allowable deduction shall be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the instrument creating the trust, or, in the absence of such provisions, on the basis of the trust income allocable to each. I n the case of an estate, the allowable deduction shall be apportioned between the estate and the heirs, legatees, and devisees on the basis of the income of the estate allocable to each. (h) DEPRECIATION OF IMPROVEMENTS IN THE C A S E ETC.—
OF M I N E S,
For additional rule applicable to depreciation of improvements in the case of mines, oil and gas wells, other natural deposits, and timber, see section 611. SEC. 168. AMORTIZATION OF EMERGENCY FACILITIES. (a) GENERAL RULE. — E v e r y person, a t his election, shall be entitled to a deduction with respect to the amortization of the adjusted § 167(c)(1)
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