Page:United States Statutes at Large Volume 83.djvu/698

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[83 STAT. 670]
[83 STAT. 670]
PUBLIC LAW 91-000—MMMM. DD, 1969

670

Ante. p. 571.

26 u^c mo

68A Stat. 45;

76 Stat. 1063; Ante, p. 5 7 1.

PUBLIC LAW 91-172-DEC. 30, 1969

[83 STAT.

(4) Section 1245(a) of such Code (relating to gain from disposition of certain depreciable property) is amended— (A) by inserting after paragraph (2)(C) (added by section 212(a)(1) of this Act) the following new subparagraph: " (D) with respect to any property referred to in paragraph (3)(D), its adjusted basis recomputed by adding thereto all adjustments attributable to periods beginning with the first month for which a deduction for amortization is allowed under section 169 or 185"; (B) by striking out "168" each place it appears in paragraph (2) and inserting in lieu thereof "168,169,184,185, or 187". (C) by striking out "section 167" in paragraph (3) and inserting in lieu thereof "section 167 (or subject to the allowance of amortization provided in section 185)"; (D) by striking out "or" at the end of paragraphs (3)(A) and (B); _ (E) by striking out the period at the end of paragraph (3)(C) and inserting in lieu thereof ", or"; and (F) by adding at the end of paragraph (3) the following new subparagraph: " (D) so much of any real property (other than any property described in subparagraph (B)) which has an adjusted basis in which there are reflected adjustments for amortization under section 169 or 185." (^) Section 1250(b)(3) (relating to depreciation adjustments) is amended by striking out "168" and inserting in lieu thereof "168, 169, or 185". (c) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to taxable years ending after December 31, 1968. SEC. 705. AMORTIZATION OF RAILROAD ROLLING STOCK AND RIGHTOF-WAY IMPROVEMENTS. (a) ALLOWANCE.—Part VI of subchapter B or chapter 1 (relating to itemized deductions for individuals and corporations) is amended by addinff after section 183 (as added by section 213 of this Act) the following new sections: "SEC. 184. AMORTIZATION OF CERTAIN RAILROAD ROLLING STOCK. " (a) ALLOWANCE OF DEDUCTION.—Every person, at his election, shall be entitled to a deduction with respect to the amortization of the adjusted basis (for determining gain) of any qualified railroad rolling stock (as defined in subsection (d)), based on a period of 60 months. Such amortization deduction shall be an amount, with respect to each month of such period within the taxable year, equal to the adjusted basis of the qualified railroad rolling stock at the end of such month divided by the number of months (including 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 provided by this section with respect to any qualified railroad rolling stock for any month shall be in lieu of the depreciation deduction with respect to such rolling stock for such month provided by section 167. The 60-month period shall begin, as to any qualified railroad rolling stock, at the election of the taxpayer, with the month following the month in which such rolling stock was placed in service or with the succeeding taxable year. " (b) ELECTION OF AMORTIZATION.—The election of the taxpayer to

take the amortization deduction and to begin the 60-month period with the month following the month in which the qualified railroad rolling stock was placed in service, or with the taxable year succeeding the