CH. 1—NORMAL TAXES AND SURTAXES
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prescribe, by the certifying authority designated by the President as compensation to the taxpayer for the unamortized cost of the emergency facihty made because— (A) a contract with the United States involving the use of the facihty has been terminated by its terms or by cancellation, or (B) the taxpayer had reasonable ground (either from provisions of a contract with the United States involving the use of the facility, or from written or oral representations made under authority of the United States) for anticipating future contracts involving the use of the facUity, which future contracts have not been made. (2) I n case the taxpayer is not entitled to any amortization deduction with respect to the emergency facility, the depreciation deduction allowable under section 167 on account of the month in which such amount is so includible shall be increased by such amount, b u t such deduction on account of such month shall not be in excess of the adjusted basis of the emergency facility as of the end of such month (computed without regard to any amount allowable, on account of such month, under section 167 or this paragraph). (h) L I F E TENANT AND REMAINDEEMAN.—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 allowable to the life tenant, (i) CROSS R E F E R E N C E. — For special rule with respect to gain derived from the sale or exchange of property the adjusted basis of which is determined with regard to this section, see section 1238. SEC. 169. AMORTIZATION OF GRAIN-STORAGE FACILITIES. (a) A L L O W A N C E O F DEDUCTION. — (1) ORIGINAL OWNER.—Any person who constructs, reconstructs,
or erects a grain-storage facUity (as defined in subsection (d)) shall, a t his election, be entitled to a deduction with respect to the amortization of the adjusted basis (for determining gain) of such facility based on a period of 60 months. The 60-month period shall begin as to any such facility, at the election of the taxpayer, with the month following the month in which the facility was completed, or with the succeeding taxable year. (2) SUBSEQUENT OWNERS.—Any person who acquires a grain-
storage facility from a taxpayer who— (A) elected under subsection (b) to take the amortization deduction provided by this subsection with respect to such facility, and (B) did not discontinue the amortization deduction pursuant to subsection (c), shall, a t his election, be entitled to a deduction with respect to the adjusted basis (determined under subsection (e)(2)) of such facility based on the period, if any, remaining (at the time of acquisition) in the 60-month period elected under subsection (b) by the person who constructed, reconstructed, or erected such facUity. § 169(a)(2)
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