
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1245]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
                 Subchapter P--Capital Gains and Losses
 
     PART IV--SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES
 
Sec. 1245. Gain from dispositions of certain depreciable 
        property
        

(a) General rule

                         (1) Ordinary income

        Except as otherwise provided in this section, if section 1245 
    property is disposed of the amount by which the lower of--
            (A) the recomputed basis of the property, or
            (B)(i) in the case of a sale, exchange, or involuntary 
        conversion, the amount realized, or
            (ii) in the case of any other disposition, the fair market 
        value of such property,

    exceeds the adjusted basis of such property shall be treated as 
    ordinary income. Such gain shall be recognized notwithstanding any 
    other provision of this subtitle.

                        (2) Recomputed basis

        For purposes of this section--

        (A) In general

            The term ``recomputed basis'' means, with respect to any 
        property, its adjusted basis recomputed by adding thereto all 
        adjustments reflected in such adjusted basis on account of 
        deductions (whether in respect of the same or other property) 
        allowed or allowable to the taxpayer or to any other person for 
        depreciation or amortization.

        (B) Taxpayer may establish amount allowed

            For purposes of subparagraph (A), if the taxpayer can 
        establish by adequate records or other sufficient evidence that 
        the amount allowed for depreciation or amortization for any 
        period was less than the amount allowable, the amount added for 
        such period shall be the amount allowed.

        (C) Certain deductions treated as amortization

            Any deduction allowable under section 179, 179A, 190, or 193 
        shall be treated as if it were a deduction allowable for 
        amortization.

                      (3) Section 1245 property

        For purposes of this section, the term ``section 1245 property'' 
    means any property which is or has been property of a character 
    subject to the allowance for depreciation provided in section 167 
    and is either--
            (A) personal property,
            (B) other property (not including a building or its 
        structural components) but only if such other property is 
        tangible and has an adjusted basis in which there are reflected 
        adjustments described in paragraph (2) for a period in which 
        such property (or other property)--
                (i) was used as an integral part of manufacturing, 
            production, or extraction or of furnishing transportation, 
            communications, electrical energy, gas, water, or sewage 
            disposal services,
                (ii) constituted a research facility used in connection 
            with any of the activities referred to in clause (i), or
                (iii) constituted a facility used in connection with any 
            of the activities referred to in clause (i) for the bulk 
            storage of fungible commodities (including commodities in a 
            liquid or gaseous state),

            (C) 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, 179, 179A, 185,\1\ 188 (as in effect before its 
        repeal by the Revenue Reconciliation Act of 1990), 190, 193, or 
        194,\2\
---------------------------------------------------------------------------
    \1\ See References in Text note below.
    \2\ Comma added editorially.
---------------------------------------------------------------------------
            (D) a single purpose agricultural or horticultural structure 
        (as defined in section 168(i)(13)),
            (E) a storage facility (not including a building or its 
        structural components) used in connection with the distribution 
        of petroleum or any primary product of petroleum, or
            (F) any railroad grading or tunnel bore (as defined in 
        section 168(e)(4)).

                (4) Special rule for player contracts

        (A) In general

            For purposes of this section, if a franchise to conduct any 
        sports enterprise is sold or exchanged, and if, in connection 
        with such sale or exchange, there is a transfer of any player 
        contracts, the recomputed basis of such player contracts in the 
        hands of the transferor shall be the adjusted basis of such 
        contracts increased by the greater of--
                (i) the previously unrecaptured depreciation with 
            respect to player contracts acquired by the transferor at 
            the time of acquisition of such franchise, or
                (ii) the previously unrecaptured depreciation with 
            respect to the player contracts involved in such transfer.

        (B) Previously unrecaptured depreciation with respect to initial 
                contracts

            For purposes of subparagraph (A)(i), the term ``previously 
        unrecaptured depreciation'' means the excess (if any) of--
                (i) the sum of the deduction allowed or allowable to the 
            taxpayer transferor for the depreciation attributable to 
            periods after December 31, 1975, of any player contracts 
            acquired by him at the time of acquisition of such 
            franchise, plus the deduction allowed or allowable for 
            losses incurred after December 31, 1975, with respect to 
            such player contracts acquired at the time of such 
            acquisition, over
                (ii) the aggregate of the amounts described in clause 
            (i) treated as ordinary income by reason of this section 
            with respect to prior dispositions of such player contracts 
            acquired upon acquisition of the franchise.

        (C) Previously unrecaptured depreciation with respect to 
                contracts transferred

            For purposes of subparagraph (A)(ii), the term ``previously 
        unrecaptured depreciation'' means the amount of any deduction 
        allowed or allowable to the taxpayer transferor for the 
        depreciation of any contracts involved in such transfer.

        (D) Player contract

            For purposes of this paragraph, the term ``player contract'' 
        means any contract for the services of an athlete which, in the 
        hands of the taxpayer, is of a character subject to the 
        allowance for depreciation provided in section 167.

(b) Exceptions and limitations

                              (1) Gifts

        Subsection (a) shall not apply to a disposition by gift.

                       (2) Transfers at death

        Except as provided in section 691 (relating to income in respect 
    of a decedent), subsection (a) shall not apply to a transfer at 
    death.

                  (3) Certain tax-free transactions

        If the basis of property in the hands of a transferee is 
    determined by reference to its basis in the hands of the transferor 
    by reason of the application of section 332, 351, 361, 721, or 731, 
    then the amount of gain taken into account by the transferor under 
    subsection (a)(1) shall not exceed the amount of gain recognized to 
    the transferor on the transfer of such property (determined without 
    regard to this section). Except as provided in paragraph (7), this 
    paragraph shall not apply to a disposition to an organization (other 
    than a cooperative described in section 521) which is exempt from 
    the tax imposed by this chapter.

       (4) Like kind exchanges; involuntary conversions, etc.

        If property is disposed of and gain (determined without regard 
    to this section) is not recognized in whole or in part under section 
    1031 or 1033, then the amount of gain taken into account by the 
    transferor under subsection (a)(1) shall not exceed the sum of--
            (A) the amount of gain recognized on such disposition 
        (determined without regard to this section), plus
            (B) the fair market value of property acquired which is not 
        section 1245 property and which is not taken into account under 
        subparagraph (A).

                    (5) Section 1081 transactions

        Under regulations prescribed by the Secretary, rules consistent 
    with paragraphs (3) and (4) of this subsection shall apply in the 
    case of transactions described in section 1081 (relating to 
    exchanges in obedience to SEC orders).

       (6) Property distributed by a partnership to a partner

        (A) In general

            For purposes of this section, the basis of section 1245 
        property distributed by a partnership to a partner shall be 
        deemed to be determined by reference to the adjusted basis of 
        such property to the partnership.

        (B) Adjustments added back

            In the case of any property described in subparagraph (A), 
        for purposes of computing the recomputed basis of such property 
        the amount of the adjustments added back for periods before the 
        distribution by the partnership shall be--
                (i) the amount of the gain to which subsection (a) would 
            have applied if such property had been sold by the 
            partnership immediately before the distribution at its fair 
            market value at such time, reduced by
                (ii) the amount of such gain to which section 751(b) 
            applied.

    (7) Transfers to tax-exempt organization where property will 
                        be used in unrelated business

        (A) In general

            The second sentence of paragraph (3) shall not apply to a 
        disposition of section 1245 property to an organization 
        described in section 511(a)(2) or 511(b)(2) if, immediately 
        after such disposition, such organization uses such property in 
        an unrelated trade or business (as defined in section 513).

        (B) Later change in use

            If any property with respect to the disposition of which 
        gain is not recognized by reason of subparagraph (A) ceases to 
        be used in an unrelated trade or business of the organization 
        acquiring such property, such organization shall be treated for 
        purposes of this section as having disposed of such property on 
        the date of such cessation.

                         (8) Timber property

        In determining, under subsection (a)(2), the recomputed basis of 
    property with respect to which a deduction under section 194 was 
    allowed for any taxable year, the taxpayer shall not take into 
    account adjustments under section 194 to the extent such adjustments 
    are attributable to the amortizable basis of the taxpayer acquired 
    before the 10th taxable year preceding the taxable year in which 
    gain with respect to the property is recognized.

(c) Adjustments to basis

    The Secretary shall prescribe such regulations as he may deem 
necessary to provide for adjustments to the basis of property to reflect 
gain recognized under subsection (a).

(d) Application of section

    This section shall apply notwithstanding any other provision of this 
subtitle.

(Added Pub. L. 87-834, Sec. 13(a)(1), Oct. 16, 1962, 76 Stat. 1032; 
amended Pub. L. 88-272, title II, Sec. 203(d), Feb. 26, 1964, 78 Stat. 
35; Pub. L. 91-172, title II, Sec. 212(a)(1), (2), title VII, 
Sec. 704(b)(4), Dec. 30, 1969, 83 Stat. 571, 670; Pub. L. 92-178, title 
I, Sec. 104(a)(2), title III, Sec. 303(c)(1), (2), Dec. 10, 1971, 85 
Stat. 501, 522; Pub. L. 94-81, Sec. 2(a), Aug. 9, 1975, 89 Stat. 417; 
Pub. L. 94-455, title II, Sec. 212(b)(1), title XIX, Secs. 1901(a)(140), 
(b)(3)(K), (11)(D), 1906(b) (13)(A), 1951(c)(2)(C), title XXI, 
Secs. 2122(b)(3), 2124(a)(2), Oct. 4, 1976, 90 Stat. 1546, 1787, 1793, 
1795, 1834, 1840, 1915, 1917; Pub. L. 95-600, title VII, 
Sec. 701(f)(3)(A), (B), (w)(1), (2), Nov. 6, 1978, 92 Stat. 2901, 2920; 
Pub. L. 96-223, title II, Sec. 251(a)(2)(C), Apr. 2, 1980, 94 Stat. 287; 
Pub. L. 96-451, title III, Sec. 301(c)(1), Oct. 14, 1980, 94 Stat. 1990; 
Pub. L. 97-34, title II, Secs. 201(b), 202(b), 204(a)-(d), 212(d)(2)(F), 
Aug. 13, 1981, 95 Stat. 218, 220, 222, 223, 239; Pub. L. 97-448, title 
I, Sec. 102(e)(2)(B), Jan. 12, 1983, 96 Stat. 2371; Pub. L. 98-369, div. 
A, title I, Sec. 111(e)(5), (10), July 18, 1984, 98 Stat. 633; Pub. L. 
99-121, title I, Sec. 103(b)(1)(D), Oct. 11, 1985, 99 Stat. 509; Pub. L. 
99-514, title II, Sec. 201(d)(11), Oct. 22, 1986, 100 Stat. 2141; Pub. 
L. 100-647, title I, Sec. 1002(i)(2)(I), Nov. 10, 1988, 102 Stat. 3371; 
Pub. L. 101-239, title VII, Sec. 7622(b)(2)[(d)(2)], Dec. 19, 1989, 103 
Stat. 2378; Pub. L. 101-508, title XI, Secs. 11704(a)(13), 
11801(c)(6)(E), (8)(H), 11813(b)(21), Nov. 5, 1990, 104 Stat. 1388-518, 
1388-524, 1388-555; Pub. L. 103-66, title XIII, Sec. 13261(f)(4), (5), 
Aug. 10, 1993, 107 Stat. 539; Pub. L. 104-7, Sec. 2(b), Apr. 11, 1995, 
109 Stat. 93; Pub. L. 104-188, title I, Sec. 1703(n)(6), Aug. 20, 1996, 
110 Stat. 1877; Pub. L. 105-34, title XVI, Sec. 1604(a)(3), Aug. 5, 
1997, 111 Stat. 1097.)

                       References in Text

    Section 185 of this title, referred to in subsec. (a)(3)(C), was 
repealed by Pub. L. 99-514, title II, Sec. 242(a), Oct. 22, 1986, 100 
Stat. 2181.
    The Revenue Reconciliation Act of 1990, referred to in subsec. 
(a)(3)(C), is title XI of Pub. L. 101-508, Nov. 5, 1990, 104 Stat. 1388-
400. Section 11801(a)(13) of the Act repealed section 188 of this title. 
For complete classification of this Act to the Code, see Short Title 
note set out under section 1 of this title and Tables.


                               Amendments

    1997--Subsec. (a)(2)(C), (3)(C). Pub. L. 105-34 inserted ``179A,'' 
after ``179,''.
    1996--Subsec. (a)(3). Pub. L. 104-188 reenacted heading without 
change and amended introductory provisions generally. Prior to 
amendment, introductory provisions read as follows: ``For purposes of 
this section, the term `section 1245 property' means any property which 
is or has been property of a character subject to the allowance for 
depreciation provided in section 167 (or subject to the allowance of 
amortization provided in)) and is either--''.
    1995--Subsec. (b)(5). Pub. L. 104-7 struck out ``1071 and'' before 
``1081 transactions'' in heading and ``section 1071 (relating to gain 
from sale or exchange to effectuate policies of FCC) or'' before 
``section 1081'' in text.
    1993--Subsec. (a)(2)(C). Pub. L. 103-66, Sec. 13261(f)(4), 
substituted ``or 193'' for ``193, or 1253(d)(2) or (3)''.
    Subsec. (a)(3). Pub. L. 103-66, Sec. 13261(f)(5), struck out 
``section 185 or 1253(d)(2) or (3)'' after ``amortization provided in'' 
in introductory provisions.
    1990--Subsec. (a)(3). Pub. L. 101-508, Sec. 11704(a)(13), 
substituted ``or (3))'' for ``or (3)'' in introductory provisions.
    Subsec. (a)(3)(C). Pub. L. 101-508, Sec. 11801(c)(6)(E), substituted 
``188 (as in effect before its repeal by the Revenue Reconciliation Act 
of 1990),'' for ``188,''.
    Subsec. (a)(3)(D). Pub. L. 101-508, Sec. 11813(b)(21), substituted 
``section 168(i)(13)'' for ``section 48(p)''.
    Subsec. (b)(3). Pub. L. 101-508, Sec. 11801(c)(8)(H), struck out 
``371(a), 374(a),'' after ``332, 351, 361,''.
    1989--Subsec. (a)(2)(C). Pub. L. 101-239, 
Sec. 7622(b)(2)(A)[(d)(2)(A)], substituted ``193, or 1253(d)(2) or (3)'' 
for ``or 193''.
    Subsec. (a)(3). Pub. L. 101-239, Sec. 7622(b)(2)(B)[(d)(2)(B)], 
substituted ``section 185 or 1253(d)(2) or (3)'' for ``section 185'' in 
introductory provisions.
    1988--Subsec. (a)(3)(F). Pub. L. 100-647 added subpar. (F).
    1986--Subsec. (a)(1). Pub. L. 99-514, Sec. 201(d)(11)(A), struck out 
``during a taxable year beginning after December 31, 1962, or section 
1245 recovery property is disposed of after December 31, 1980,'' after 
``if section 1245 property is disposed of''.
    Subsec. (a)(2). Pub. L. 99-514, Sec. 201(d)(11)(B), amended par. (2) 
generally, restating former subpars. (A) to (E) and concluding 
provisions as subpars. (A) to (C).
    Subsec. (a)(3). Pub. L. 99-514, Sec. 201(d)(11)(C), redesignated 
subpars. (D), (E), and (F) as (C), (D), and (E), respectively, and 
struck out former subpar. (C) which read as follows: ``an elevator or an 
escalator''.
    Subsec. (a)(5), (6). Pub. L. 99-514, Sec. 201(d)(11)(D), struck out 
par. (5) which defined ``section 1245 recovery property'' and par. (6) 
which provided special rule for qualified leased property.
    1985--Subsec. (a)(5)(A) to (C). Pub. L. 99-121 substituted ``19-year 
real property'' for ``18-year real property''.
    1984--Subsec. (a)(5)(A) to (C). Pub. L. 98-369, Sec. 111(e)(5), 
substituted ``18-year real property and low-income housing'' for ``15-
year real property''.
    Subsec. (d)(5)(D). Pub. L. 98-369, Sec. 111(e)(10), substituted 
``low-income housing (within the meaning of section 168(c)(2)(F))'' for 
``15-year real property which is described in clause (i), (ii), (iii), 
or (iv) of section 1250(a)(1)(B)''.
    1983--Subsec. (a)(3)(F). Pub. L. 97-448 inserted ``(not including a 
building or its structural components)'' after ``a storage facility''.
    1981--Subsec. (a)(1). Pub. L. 97-34, Sec. 204(a), inserted reference 
to section 1245 recovery property disposed of after Dec. 31, 1980, in 
introductory provisions.
    Subsec. (a)(2). Pub. L. 97-34, Secs. 202(b)(1)-(3), 204(b), inserted 
reference to section 179 in subpar. (D), added subpar. (E), and, in 
provisions following subpar. (E), and inserted references to section 179 
in three places. Pub. L. 97-34, Sec. 212(d)(2)(F), in provisions 
following subpar. (E), substituted ``191 (as in effect before its repeal 
by the Economic Recovery Tax Act of 1981)'' for ``191'' in two places.
    Subsec. (a)(3)(D). Pub. L. 97-34, Sec. 202(b)(3), inserted reference 
to section 179.
    Subsec. (a)(3)(E), (F). Pub. L. 97-34, Sec. 201(b), added subpars. 
(E) and (F).
    Subsec. (a)(5). Pub. L. 97-34, Sec. 204(c), added par. (5).
    Subsec. (a)(6). Pub. L. 97-34, Sec. 204(d), added par. (6).
    1980--Subsec. (a)(2). Pub. L. 96-451, Sec. 301(c)(1)(A), (B), 
inserted references to section 194 in subpar. (D) and text following 
subpar. (D).
    Pub. L. 96-223, Sec. 251(a)(2)(C)(i)-(iii), inserted references to 
section 193 in subpar. (D) and text following subpar. (D).
    Subsec. (a)(3)(D). Pub. L. 96-451, Sec. 301(c)(1)(B), inserted 
reference to section 194.
    Pub. L. 96-223, Sec. 251(a)(2)(C)(i), inserted reference to section 
193.
    Subsec. (b)(8). Pub. L. 96-451, Sec. 301(c)(1)(C), added par. (8).
    1978--Subsec. (a)(2). Pub. L. 95-600, Sec. 701(f)(3)(A), struck out 
from the listed sections in subpar. (D) reference to 191 and inserted 
``(in the case of property described in paragraph (3)(C))'' before 
``191'' in two places in next to last sentence.
    Subsec. (a)(3)(D). Pub. L. 95-600, Sec. 701(f)(3)(B), struck out 
reference to section 191.
    Subsec. (a)(4)(B). Pub. L. 95-600, Sec. 701(w)(2), inserted 
``attributable to periods after December 31, 1975,'' after ``for the 
depreciation'', ``incurred after December 31, 1975,'' after ``allowable 
for losses'', and ``described in clause (i)'' after ``of the amounts''.
    Subsec. (a)(4)(C). Pub. L. 95-600, Sec. 701(w)(1), struck out 
provisions relating to the aggregate of the amounts treated as ordinary 
income.
    1976--Subsec. (a)(1). Pub. L. 94-455, Sec. 1901(b)(3)(K), 
substituted ``ordinary income'' for ``gain from the sale or exchange of 
property which is neither a capital asset nor property described in 
section 1231''.
    Subsec. (a)(2)(D). Pub. L. 94-455, Secs. 2122(b)(3)(B), 2124(a)(2), 
inserted reference to sections 190 and 191.
    Subsec. (a)(2) foll. (D). Pub. L. 94-455, Secs. 1901(b)(11)(D), 
1951(c)(2)(C), 2122(b)(3)(A), (C), 2124(a)(2), in text following subpar. 
(D): struck out reference to section 187 in two places; inserted ``(as 
in effect before its repeal by the Tax Reform Act of 1976),'' after 
``section 168,'' in two places; inserted provision for treatment for 
purposes of this section of any deduction allowable under section 190 as 
if it were a deduction allowable for amortization; and inserted 
reference to section 191 in two places, respectively.
    Subsec. (a)(3)(D). Pub. L. 94-455, Secs. 2122(b)(3)(A), 2124(a)(2), 
inserted reference to sections 190 and 191.
    Subsec. (a)(4). Pub. L. 94-455, Sec. 212(b)(1), added par. (4).
    Subsec. (b)(5). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ``or 
his delegate'' after ``Secretary''.
    Subsec. (b)(7)(B). Pub. L. 94-455, Sec. 1901(a)(140), struck out 
``such organization acquiring such property,'' before ``such 
organization''.
    Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ``or 
his delegate'' after ``Secretary''.
    1975--Subsec. (b)(3), (7). Pub. L. 94-81, Sec. 2(a)(1), (2), 
inserted reference to par. (7) in par. (3), and added par. (7).
    1971--Subsec. (a)(2). Pub. L. 92-178, Sec. 303(c)(1), inserted 
reference to section 188 in two places in text following subpar. (D).
    Subsec. (a)(3)(B)(ii), (iii). Pub. L. 92-178, Sec. 104(a)(2), 
substituted ``research facility'' for ``research or storage facility'' 
in cl. (ii) and added cl. (iii).
    Subsec. (a)(3)(D). Pub. L. 92-178, Sec. 303(c)(2), inserted 
reference to section 188.
    1969--Subsec. (a)(2). Pub. L. 91-172, Secs. 212(a)(1), 704(b)(4)(A), 
(B), added subpar. (C) and inserted references to sections 169, 185, and 
187, and added subpar. (D).
    Subsec. (a)(3). Pub. L. 91-172, Secs. 212(a)(2), 704(b)(4)(C)-(F), 
struck out ``(other than livestock)'' after ``means any property'' and 
substituted ``section 167 (or subject to the allowance of amortization 
provided in section 185)'' for ``section 167'' and added subpar. (D).
    1964--Subsec. (a)(2), (3)(C). Pub. L. 88-272 redefined ``recomputed 
basis'' with respect to elevators or escalators in par. (2), and 
inserted subpar. (C) in par. (3).


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-34 effective as if included in the 
amendments made by section 1913 of the Energy Policy Act of 1992, Pub. 
L. 102-486, see section 1604(a)(4) of Pub. L. 105-34, set out as a note 
under section 263 of this title.


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-188 effective as if included in the 
provision of the Revenue Reconciliation Act of 1993, Pub. L. 103-66, 
Secs. 13001-13444, to which such amendment relates, see section 1703(o) 
of Pub. L. 104-188, set out as a note under section 39 of this title.


                    Effective Date of 1995 Amendment

    Amendment by Pub. L. 104-7 applicable to sales and exchanges on or 
after January 17, 1995, and to sales and exchanges before such date if 
FCC tax certificate with respect to such sale or exchange was issued on 
or after such date, but not applicable with respect to certain binding 
contracts, see section 2(d) of Pub. L. 104-7, set out as an Effective 
Date of Repeal note under section 1071 of this title.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-66 applicable, except as otherwise 
provided, with respect to property acquired after Aug. 10, 1993, see 
section 13261(g) of Pub. L. 103-66, set out as an Effective Date note 
under section 197 of this title.


                    Effective Date of 1990 Amendment

    Amendment by section 11813(b)(21) of Pub. L. 101-508 applicable to 
property placed in service after Dec. 31, 1990, but not applicable to 
any transition property (as defined in section 49(e) of this title), any 
property with respect to which qualified progress expenditures were 
previously taken into account under section 46(d) of this title, and any 
property described in section 46(b)(2)(C) of this title, as such 
sections were in effect on Nov. 4, 1990, see section 11813(c) of Pub. L. 
101-508, set out as a note under section 29 of this title.


                    Effective Date of 1989 Amendment

    Amendment by Pub. L. 101-239 applicable to transfers after Oct. 2, 
1989, but not applicable to any transfer pursuant to a written binding 
contract in effect on Oct. 2, 1989, and at all times thereafter before 
the transfer, see section 7622(c)[(e)] of Pub. L. 101-239, set out as a 
note under section 167 of this title.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 effective, except as otherwise 
provided, as if included in the provision of the Tax Reform Act of 1986, 
Pub. L. 99-514, to which such amendment relates, see section 1019(a) of 
Pub. L. 100-647, set out as a note under section 1 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 applicable to property placed in service 
after Dec. 31, 1986, in taxable years ending after such date, with 
exceptions, see sections 203 and 204 of Pub. L. 99-514, set out as a 
note under section 168 of this title.
    Amendment by Pub. L. 99-514 not applicable to any property placed in 
service before Jan. 1, 1994, if such property placed in service as part 
of specified rehabilitations, and not applicable to certain additional 
rehabilitations, see section 251(d)(2), (3) of Pub. L. 99-514, set out 
as a note under section 46 of this title.


                    Effective Date of 1985 Amendment

    Amendment by Pub. L. 99-121 applicable with respect to property 
placed in service by the taxpayer after May 8, 1985, with specified 
exceptions, see section 105(b) of Pub. L. 99-121, set out as a note 
under section 168 of this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 applicable with respect to property 
placed in service by the taxpayer after Mar. 15, 1984, subject to 
certain exceptions, see section 111(g) of Pub. L. 98-369, set out as a 
note under section 168 of this title.


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 97-448 effective, except as otherwise provided, 
as if it had been included in the provision of the Economic Recovery Tax 
Act of 1981, Pub. L. 97-34, to which such amendment relates, see section 
109 of Pub. L. 97-448, set out as a note under section 1 of this title.


                    Effective Date of 1981 Amendment

    Amendment by sections 201(b), 202(b), and 204(a)-(d) of Pub. L. 97-
34 applicable to property placed in service after Dec. 31, 1980, in 
taxable years ending after that date, see section 209(a) of Pub. L. 97-
34, set out as an Effective Date note under section 168 of this title.
    Amendment by section 212(d)(2)(F) of Pub. L. 97-34 applicable to 
expenditures incurred after Dec. 31, 1981, in taxable years ending after 
such date, see section 212(e) of Pub. L. 97-34, set out as a note under 
section 46 of this title.


                    Effective Date of 1980 Amendments

    Amendment by Pub. L. 96-451 applicable with respect to additions to 
capital account made after Dec. 31, 1979, see section 301(d) of Pub. L. 
96-451, set out as an Effective Date note under section 194 of this 
title.
    Amendment by Pub. L. 96-223 applicable to taxable years beginning 
after Dec. 31, 1979, see section 251(b) of Pub. L. 96-223, set out as an 
Effective Date note under section 193 of this title.


                    Effective Date of 1978 Amendment

    Amendment by section 701(f)(3)(A), (B) of Pub. L. 95-600 effective 
as if included within the amendment of subsec. (a)(2), (3)(D) by section 
2124 of Pub. L. 94-455, see section 701(f)(8) of Pub. L. 95-600, set out 
as an Effective and Termination Dates of 1978 Amendments note under 
section 167 of this title.
    Section 701(w)(3) of Pub. L. 95-600 provided that: ``The amendments 
made by this subsection [amending this section] shall apply to transfers 
of player contracts in connection with any sale or exchange of a 
franchise after December 31, 1975.''


                    Effective Date of 1976 Amendment

    Section 212(b)(2) of Pub. L. 94-455 provided that: ``The amendment 
made by this subsection [amending this section] applies to transfers of 
player contracts in connection with any sale or exchange of a franchise 
after December 31, 1975.''
    Amendment by section 1901(a)(140), (b)(3)(K), (11)(D) of Pub. L. 94-
455 effective for taxable years beginning after Dec. 31, 1976, see 
section 1901(d) of Pub. L. 94-455, set out as a note under section 2 of 
this title.
    Amendment by section 1951(c)(2)(C) of Pub. L. 94-455 applicable to 
taxable years beginning after Dec. 31, 1976, see section 1951(d) of Pub. 
L. 94-455, set out as a note under section 72 of this title.
    Amendment by section 2122(b)(3) of Pub. L. 94-455 applicable to 
taxable years beginning after Dec. 31, 1976, see section 2122(c) of Pub. 
L. 94-455, as amended, set out as an Effective Date note under section 
190 of this title.
    Amendment by section 2124(a)(2) of Pub. L. 94-455 applicable with 
respect to additions to capital account made after June 14, 1976 and 
before June 15, 1981, see section 2124(a)(4) of Pub. L. 94-455, set out 
as an Effective Date note under section 642 of this title.


                    Effective Date of 1975 Amendment

    Amendment by Pub. L. 94-81 applicable to dispositions after Dec. 31, 
1969, in taxable years ending after such date, with special provision 
for an election in the case of dispositions occurring before Aug. 9, 
1975, see section 2(c) of Pub. L. 94-81, set out as a note under section 
1250 of this title.


                    Effective Date of 1971 Amendment

    Amendment by section 104(a)(2) of Pub. L. 92-178 applicable to 
property described in section 50 of this title relating to restoration 
of credit, see section 104(h) of Pub. L. 92-178, set out as a note under 
section 48 of this title.
    Amendment by section 303(c)(1), (2) of Pub. L. 92-178 applicable to 
taxable years ending after Dec. 31, 1971, see section 303(d) of Pub. L. 
92-178, set out as a note under section 642 of this title.


                    Effective Date of 1969 Amendment

    Section 212(a)(3) of Pub. L. 91-172 provided that: ``The amendments 
made by paragraphs (1) and (2) [amending this section] shall apply with 
respect to taxable years beginning after December 31, 1969.''
    Amendment by section 704(b)(4) of Pub. L. 91-172 applicable to 
taxable years ending after Dec. 31, 1968, see section 704(c) of Pub. L. 
91-172, set out as a note under section 169 of this title.


                    Effective Date of 1964 Amendment

    Amendment by Pub. L. 88-272 applicable with respect to dispositions 
after Dec. 31, 1963, in taxable years ending after such date, see 
section 203(f)(3) of Pub. L. 88-272, set out as a note under section 48 
of this title.


                             Effective Date

    Section 13(g) of Pub. L. 87-834 provided that: ``The amendments made 
by this section [enacting this section and amending sections 167, 170, 
301, 312, 341, 453, 613, and 751 of this title] (other than the 
amendments made by subsection (c) [amending sections 167, 179, and 642 
of this title]) shall apply to taxable years beginning after December 
31, 1962. The amendments made by subsection (c) shall apply to taxable 
years beginning after December 31, 1961, and ending after the date of 
the enactment of this Act [Oct. 16, 1962].''


                            Savings Provision

    For provisions that nothing in amendment by sections 11801 and 11813 
of Pub. L. 101-508 be construed to affect treatment of certain 
transactions occurring, property acquired, or items of income, loss, 
deduction, or credit taken into account prior to Nov. 5, 1990, for 
purposes of determining liability for tax for periods ending after Nov. 
5, 1990, see section 11821(b) of Pub. L. 101-508, set out as a note 
under section 29 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 50, 108, 168, 169, 170, 179, 
179A, 198, 263A, 291, 341, 453, 465, 467, 512, 613, 617, 751, 861, 1017, 
1250, 1252, 1255, 1257, 1276, 1400B of this title.
