Notes on 26 U.S.C. § 1016 : US Code - Notes

Search Notes on 26 U.S.C. § 1016 : US Code - Notes

(Aug. 16, 1954, ch. 736, 68A Stat. 299; June 29, 1956, ch. 464,
Sec. 4(c), 70 Stat. 407; Pub. L. 85-866, title I, Secs. 2(b),
64(d)(2), Sept. 2, 1958, 72 Stat. 1607, 1656; Pub. L. 86-69, Sec.
3(d), June 25, 1959, 73 Stat. 139; Pub. L. 87-834, Secs. 2(f),
8(g)(2), 12(b)(4), Oct. 16, 1962, 76 Stat. 972, 998, 1031; Pub. L.
88-272, title II, Secs. 203(a)(3)(C), 225(j)(2), 227(b)(5), Feb.
26, 1964, 78 Stat. 34, 93, 98; Pub. L. 91-172, title II, Sec.
231(c)(3), title V, Secs. 504(c)(4), 516(c)(2)(B), Dec. 30, 1969,
83 Stat. 580, 633, 648; Pub. L. 94-455, title XIX, Sec.
1901(a)(123), (b)(1)(F)(ii), (21)(G), (29)(A), (30)(A), title XX,
Sec. 2005(a)(3), Oct. 4, 1976, 90 Stat. 1784, 1790, 1798, 1799,
1876; Pub. L. 95-472, Sec. 4(b), Oct. 17, 1978, 92 Stat. 1335; Pub.
L. 95-600, title V, Sec. 515(2), title VI, Sec. 601(b)(3), title
VII, Sec. 702(r)(3), Nov. 6, 1978, 92 Stat. 2884, 2896, 2938; Pub.
L. 95-618, title I, Sec. 101(b)(3), title II, Sec. 201(b), Nov. 9,
1978, 92 Stat. 3179, 3183; Pub. L. 96-222, title I, Secs.
106(a)(2), (3), 107(a)(2)(C), Apr. 1, 1980, 94 Stat. 221, 222; Pub.
L. 96-223, title IV, Sec. 401(a), (c)(1), Apr. 2, 1980, 94 Stat.
299, 300; Pub. L. 97-34, title II, Sec. 212(d)(2)(G), title IV,
Sec. 421(g), Aug. 13, 1981, 95 Stat. 239, 310; Pub. L. 97-248,
title II, Secs. 201(c)(2), 205(a)(5)(B), Sept. 3, 1982, 96 Stat.
418, 429; Pub. L. 97-354, Sec. 5(a)(33), Oct. 19, 1982, 96 Stat.
1695; Pub. L. 98-369, div. A, title I, Secs. 43(a)(2), 53(d)(3),
title II, Sec. 211(b)(14), title IV, Sec. 474(r)(23), title V, Sec.
541(b)(2), July 18, 1984, 98 Stat. 558, 568, 756, 844, 890; Pub. L.
99-514, title II, Sec. 241(b)(2), title VII, Sec. 701(e)(4)(D),
title XIII, Sec. 1303(b)(3), title XVIII, Sec. 1899A(25), Oct. 22,
1986, 100 Stat. 2181, 2343, 2658, 2959; Pub. L. 100-647, title I,
Secs. 1006(j)(1)(B), 1018(u)(22), Nov. 10, 1988, 102 Stat. 3411,
3591; Pub. L. 101-194, title V, Sec. 502(b)(2), Nov. 30, 1989, 103
Stat. 1755; Pub. L. 101-508, title XI, Secs. 11801(c)(1),
11812(b)(10), 11813(b)(19), Nov. 5, 1990, 104 Stat. 1388-522, 1388-
535, 1388-555; Pub. L. 102-486, title XIX, Sec. 1913(a)(3)(A),
(b)(2)(B), Oct. 24, 1992, 106 Stat. 3019, 3020; Pub. L. 103-66,
title XIII, Secs. 13114(b), 13213(a)(2)(F), 13261(f)(3), Aug. 10,
1993, 107 Stat. 431, 474, 539; Pub. L. 104-188, title I, Secs.
1704(t)(56), 1807(c)(5), Aug. 20, 1996, 110 Stat. 1890, 1902; Pub.
L. 105-34, title III, Secs. 312(d)(6), 313(b)(1), title VII, Sec.
701(b)(2), Aug. 5, 1997, 111 Stat. 840, 842, 869; Pub. L. 106-554,
Sec. 1(a)(7) [title I, Sec. 116(b)(1)], Dec. 21, 2000, 114 Stat.
2763, 2763A-603; Pub. L. 107-16, title II, Sec. 205(b)(3), June 7,
2001, 115 Stat. 53; Pub. L. 108-357, title II, Sec. 245(c)(2),
title III, Secs. 338(b)(4), 339(d), title IV, Sec. 413(c)(19), Oct.
22, 2004, 118 Stat. 1448, 1481, 1484, 1509; Pub. L. 109-58, title
XIII, Secs. 1331(b)(1), 1332(c), 1333(b)(1), 1335(b)(4),
1341(b)(2), 1342(b)(2), Aug. 8, 2005, 119 Stat. 1023, 1026, 1029,
1036, 1049, 1051; Pub. L. 109-135, title IV, Sec. 412(nn), Dec. 21,
2005, 119 Stat. 2639.)
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
REFERENCES IN TEXT
Section 1020, referred to in subsec. (a)(2), was repealed by Pub.
L. 94-455, title XIX, Sec. 1901(a)(125), Oct. 4, 1976, 90 Stat.
1784.
The Tax Reform Act of 1976, referred to in subsec. (a)(2), is
Pub. L. 94-455, Oct. 4, 1976, 90 Stat. 1520, as amended, which was
enacted Oct. 4, 1976. For complete classification of this Act to
the Code, see Tables.
Part II of subchapter L, referred to in subsec. (a)(3)(D), was
repealed and part III of subchapter L was redesignated as part II
by Pub. L. 99-514, title X, Sec. 1024(a)(1), (2), Oct. 22, 1986,
100 Stat. 2405.
The Revenue Act of 1918 (40 Stat. 1057), referred to in subsec.
(a)(4), is act Feb. 24, 1919, ch. 18, 40 Stat. 1057. For complete
classification of this Act to the Code, see Tables.
The Revenue Act of 1921 (42 Stat. 227), referred to in subsec.
(a)(4), is act Nov. 23, 1921, ch. 136, 42 Stat. 227. For complete
classification of this Act to the Code, see Tables.
Section 218 of the Revenue Act of 1918 or 1921, referred to in
subsec. (a)(4), was not classified to the Code.
The date of the enactment of the Taxpayer Relief Act of 1997,
referred to in subsec. (a)(7), is the date of enactment of Pub. L.
105-34, which was approved Aug. 5, 1997.
Section 28 of the Internal Revenue Code of 1939, referred to in
subsec. (a)(12), was classified to section 28 of former Title 26,
Internal Revenue Code. Section 28 was repealed by section
7851(a)(1)(A) of this title. For table of comparisons of the 1939
Code to the 1986 Code, see Table I preceding section 1 of this
title. See, also, section 7851(e) of this title for provision that
references in the 1986 Code to a provision of the 1939 Code, not
then applicable, shall be deemed a reference to the corresponding
provision of the 1986 Code, which is then applicable.
AMENDMENTS
2005 - Subsec. (a)(23). Pub. L. 109-135 substituted "1045(b)(3)"
for "1045(b)(4)".
Subsec. (a)(32). Pub. L. 109-58, Sec. 1331(b)(1), added par.
(32).
Subsec. (a)(33). Pub. L. 109-58, Sec. 1332(c), added par. (33).
Subsec. (a)(34). Pub. L. 109-58, Sec. 1333(b)(1), added par.
(34).
Subsec. (a)(35). Pub. L. 109-58, Sec. 1335(b)(4), added par.
(35).
Subsec. (a)(36). Pub. L. 109-58, Sec. 1341(b)(2), added par.
(36).
Subsec. (a)(37). Pub. L. 109-58, Sec. 1342(b)(2), added par.
(37).
2004 - Subsec. (a)(13). Pub. L. 108-357, Sec. 413(c)(19), struck
out par. (13) which read as follows: "to the extent provided in
section 551(e) in the case of the stock of United States
shareholders in a foreign personal holding company;".
Subsec. (a)(29). Pub. L. 108-357, Sec. 245(c)(2), added par.
(29).
Subsec. (a)(30). Pub. L. 108-357, Sec. 338(b)(4), added par.
(30).
Subsec. (a)(31). Pub. L. 108-357, Sec. 339(d), added par. (31).
2001 - Subsec. (a)(28). Pub. L. 107-16, Secs. 205(b)(3), 901,
temporarily added par. (28). See Effective and Termination Dates of
2001 Amendment note below.
2000 - Subsec. (a)(23). Pub. L. 106-554 substituted "1045, or
1397B" for "or 1045" and "1045(b)(4), or 1397B(b)(4)" for "or
1045(b)(4)".
1997 - Subsec. (a)(7). Pub. L. 105-34, Sec. 312(d)(6), inserted
"(as in effect on the day before the date of the enactment of the
Taxpayer Relief Act of 1997)" after "section 1034" and "(as so in
effect)" after "section 1034(e)".
Subsec. (a)(23). Pub. L. 105-34, Sec. 313(b)(1), substituted ",
1044, or 1045" for "or 1044" and ", 1044(d), or 1045(b)(4)" for "or
1044(d)".
Subsec. (a)(27). Pub. L. 105-34, Sec. 701(b)(2), added par. (27).
1996 - Subsec. (a)(20). Pub. L. 104-188, Sec. 1704(t)(56),
provided that section 11813(b)(19) of Pub. L. 101-508 shall be
applied as if "Paragraph (20) of section 1016(a), as redesignated
by section 11801," appeared instead of "paragraph (21) of section
1016(a)". See 1990 Amendment note below.
Subsec. (a)(26). Pub. L. 104-188, Sec. 1807(c)(5), added par.
(26).
1993 - Subsec. (a)(19) to (23). Pub. L. 103-66, Sec. 13261(f)(3),
redesignated pars. (20) to (24) as (19) to (23), respectively, and
struck out former par. (19) which read as follows: "for amounts
allowed as deductions for payments made on account of transfers of
franchises, trademarks, or trade names under section 1253(d)(2);".
Subsec. (a)(24). Pub. L. 103-66, Sec. 13261(f)(3), redesignated
par. (25) as (24). Former par. (24) redesignated (23).
Pub. L. 103-66, Sec. 13114(b), substituted "section 1043 or 1044"
for "section 1043" and "section 1043(c) or 1044(d), as the case may
be" for "section 1043(c)".
Subsec. (a)(25), (26). Pub. L. 103-66, Sec. 13261(f)(3),
redesignated pars. (25) and (26) as (24) and (25), respectively.
Subsec. (e). Pub. L. 103-66, Sec. 13213(a)(2)(F), amended heading
and text of subsec. (e) generally. Prior to amendment, text read as
follows:
"(1) For treatment of certain expenses incident to the purchase
of a residence which were deducted as moving expenses by the
taxpayer or his spouse under section 217(a), see section 217(e).
"(2) For treatment of separate mineral interests as one property,
see section 614."
1992 - Subsec. (a)(25), (26). Pub. L. 102-486 added pars. (25)
and (26).
1990 - Subsec. (a)(2). Pub. L. 101-508, Sec. 11812(b)(10),
substituted "under the straight line method" for "under section
167(b)(1)" in concluding provisions.
Subsec. (a)(20). Pub. L. 101-508, Sec. 11813(b)(19), which
directed the amendment of subsec. (a)(21) by striking "section
48(q)" and inserting "section 50(c)", was executed to subsec.
(a)(20). See 1996 Amendment note above.
Pub. L. 101-508, Sec. 11801(c)(1), redesignated par. (21) as (20)
and struck out former par. (20) which read as follows: "to the
extent provided in section 23(e), in the case of property with
respect to which a credit has been allowed under section 23;".
Subsec. (a)(21) to (25). Pub. L. 101-508, Sec. 11801(c)(1),
redesignated pars. (21) to (25) as (20) to (24), respectively.
1989 - Subsec. (a)(25). Pub. L. 101-194 added par. (25).
1988 - Subsec. (a)(5). Pub. L. 100-647, Sec. 1006(j)(1)(B),
inserted "(or the amount applied to reduce interest payments under
section 171(e)(2))" after "allowable pursuant to section
171(a)(1)".
Subsec. (a)(21) to (26). Pub. L. 100-647, Sec. 1018(u)(22), added
pars. (21) to (24) and struck out former pars. (23) to (26) which
read as follows:
"(23) to the extent provided in section 48(q) in the case of
expenditures with respect to which a credit has been allowed under
section 38;
"(24) for amounts allowed as deductions under section 59(d)
(relating to optional 10-year writeoff of certain tax preferences);
"(25) to the extent provided in section 1059 (relating to
reduction in basis for extraordinary dividends); and
"(26) in the case of qualified replacement property, the
acquisition of which resulted under section 1042 in the
nonrecognition of any part of the gain realized on the sale or
exchange of any property, to the extent provided in section
1042(c)."
Former pars. (21) and (22) had been struck out previously.
1986 - Subsec. (a). Pub. L. 99-514, Sec. 1899A(25), which
directed the amendment of pars. (23) to (26) by substituting a
semicolon for a comma at the end thereof was executed to pars. (24)
to (26) in view of the prior repeal of par. (23).
Pub. L. 99-514, Sec. 1303(b)(3), which directed the amendment of
subsec. (a) by striking out par. (22) and redesignating pars. (23)
to (27) as (22) to (26), respectively, was executed by striking out
par. (21) to reflect the probable intent of Congress in view of the
amendment by section 241(b)(2) of Pub. L. 99-514. Prior to the
amendment, par. (21) read as follows: "to the extent provided in
section 1395 in the case of stock of shareholders of a general
stock ownership corporation (as defined in section 1391) which
makes the election provided by section 1392;".
Pub. L. 99-514, Sec. 241(b)(2), redesignated pars. (17) to (27)
as (16) to (26), respectively, and struck out former par. (16)
which read as follows: "for amounts allowed as deductions for
expenditures treated as deferred expenses under section 177
(relating to trademark and trade name expenditures) and resulting
in a reduction of the taxpayer's taxes under this subtitle, but not
less than the amounts allowable under such section for the taxable
year and prior years;".
Subsec. (a)(24). Pub. L. 99-514, Sec. 701(e)(4)(D), substituted
"section 59(d)" for "section 58(i)".
1984 - Subsec. (a)(17). Pub. L. 98-369, Sec. 211(b)(14),
substituted "section 811(b)" for "section 818(b)" in two places.
Subsec. (a)(21). Pub. L. 98-369, Sec. 474(r)(23), substituted
"section 23(e)" for "section 44C(e)" and "section 23" for "section
44C".
Subsec. (a)(26). Pub. L. 98-369, Sec. 53(d)(3), added par. (26).
Subsec. (a)(27). Pub. L. 98-369, Sec. 541(b)(2), added par. (27).
Subsec. (b). Pub. L. 98-369, Sec. 43(a)(2), struck out "The term
'substituted basis' as used in this section means a basis
determined under any provision of this subchapter and subchapters C
(relating to corporate distributions and adjustments), K (relating
to partners and partnerships), and P (relating to capital gains and
losses), or under any corresponding provision of a prior income tax
law, providing that the basis shall be determined (1) by reference
to the basis in the hands of a transferor, donor, or grantor, or
(2) by reference to other property held at any time by the person
for whom the basis is to be determined." See section 7701(a)(42) of
this title.
1982 - Subsec. (a)(18). Pub. L. 97-354 substituted "section 1367"
for "section 1376", "indebtedness owed to" for "indebtedness
owing", and "an S corporation" for "an electing small business
corporation (as defined in section 1371(b))".
Subsec. (a)(24). Pub. L. 97-248, Sec. 205(a)(5)(B), substituted
"to the extent provided in section 48(q)" for "to the extent
provided in section 48(g)(5)".
Subsec. (a)(25). Pub. L. 97-248, Sec. 201(c)(2), added par. (25).
1981 - Subsec. (a)(24). Pub. L. 97-34, Sec. 212(d)(2)(G), added
par. (24).
Subsec. (c). Pub. L. 97-34, Sec. 421(g), substituted provisions
respecting increase in basis of property on which additional estate
tax is imposed for provisions for increase in basis in the case of
certain involuntary conversions, if such compulsory or involuntary
conversions are within the meaning of section 1033, and an
additional estate tax is imposed under section 2032A, and
provisions respecting time adjustment made.
1980 - Subsec. (a)(22). Pub. L. 96-222, Sec. 106(a)(2),
redesignated par. (21), relating to the extent provided in section
1395 in the case of stock of shareholders of a general stock
ownership corporation, as (22).
Subsec. (a)(23). Pub. L. 96-223, Sec. 401(a), repealed the
amendments made by Pub. L. 94-455, Sec. 2005(a)(3), and Pub. L. 95-
600, Sec. 702(r)(3). See 1976 and 1978 Amendment notes below.
Subsec. (c). Pub. L. 96-223, Sec. 401(c)(1), struck out provision
relating to the net appreciation of in value of certain property
and struck out references to section 1023 of this title.
1978 - Subsec. (a)(21). Pub. L. 95-618, Sec. 101(b)(3), added
par. (21) relating to an adjustment to the extent provided in
section 44C.
Pub. L. 95-600, Sec. 601(b)(3), as amended by Pub. L. 96-222,
Sec. 106(a)(3), added par. (21) relating to an adjustment to the
extent provided in section 1395.
Subsec. (a)(23). Pub. L. 95-600, Sec. 702(r)(3), which
redesignated par. (23) as (21), was repealed by Pub. L. 96-222,
Sec. 107(a)(2)(C), and Pub. L. 96-223, Sec. 401(a). See Repeals
note below.
Pub. L. 95-600, Sec. 515(2), substituted "December 31, 1979" for
"December 31, 1976".
Subsec. (c). Pub. L. 95-472 added subsec. (c). Former subsec. (c)
redesignated (d).
Subsec. (d). Pub. L. 95-618, Sec. 201(b), added subsec. (d).
Former subsec. (d) redesignated (e).
Pub. L. 95-472 redesignated former subsec. (c) as (d).
Subsec. (e). Pub. L. 95-618, Sec. 201(b), redesignated former
subsec. (d) as (e).
1976 - Subsec. (a)(2). Pub. L. 94-455, Sec. 1901(b)(29)(A),
inserted "(as in effect before the date of the enactment of the Tax
Reform Act of 1976)" after "under section 1020".
Subsec. (a)(10). Pub. L. 94-455, Sec. 1901(b)(21)(G), struck out
par. (10) which related to adjustment for the amounts allowed as
deductions as deferred expenses under section 615(b) of this title.
Subsec. (a)(13). Pub. L. 94-455, Sec. 1901(b)(1)(F)(ii),
substituted "section 551(e)" for "section 551(f)".
Subsec. (a)(19). Pub. L. 94-455, Sec. 1901(a)(123), (b)(30)(A),
redesignated par. (20) as (19). Former par. (19), which related to
adjustment of section 38 property to the extent provided in
sections 48(g) and 203 of this title, was struck out.
Subsec. (a)(20). Pub. L. 94-455, Sec. 1901(b)(30)(A),
redesignated par. (22) as (20). Former par. (20) redesignated (19).
Subsec. (a)(21). Pub. L. 94-455, Sec. 1901(b)(30)(A), struck out
par. (21) which related to property adjustment to the extent
provided in section 1022 of this title.
Subsec. (a)(22). Pub. L. 94-455, Sec. 1901(b)(30)(A),
redesignated par. (22) as (20).
Subsec. (a)(23). Pub. L. 94-455, Sec. 2005(a)(3), added par.
(23). See Repeals note below.
1969 - Subsec. (a)(22). Pub. L. 91-172, Sec. 516(c)(2)(B), added
par. (22).
Subsec. (a)(10). Pub. L. 91-172, Sec. 504(c)(4), limited
exploration expenditures referred to in this par. to pre-1970
exploration expenditures.
Subsec. (c). Pub. L. 91-172, Sec. 231(c)(3), redesignated
existing provisions as par. (2) and added par. (1).
1964 - Subsec. (a)(15). Pub. L. 88-272, Sec. 227(b)(5), inserted
"or domestic iron ore".
Subsec. (a)(19). Pub. L. 88-272, Sec. 203(a)(3)(C), inserted "and
in section 203(a)(2) of the Revenue Act of 1964".
Subsec. (a)(21). Pub. L. 88-272, Sec. 225(j)(2), added par. (21).
1962 - Subsec. (a)(3)(D). Pub. L. 87-834, Sec. 8(g)(2), added
subpar. (D).
Subsec. (a)(19). Pub. L. 87-834, Sec. 2(f), added par. (19).
Subsec. (a)(20). Pub. L. 87-834, Sec. 12(b)(4), added par. (20).
1959 - Subsec. (a)(3)(C). Pub. L. 86-69, Sec. 3(d)(1), added
subpar. (C).
Subsec. (a)(17). Pub. L. 86-69, Sec. 3(d)(2), added par. (17).
1958 - Subsec. (a)(6). Pub. L. 85-866, Sec. 2(b), struck out
"short-term" before "municipal bond".
Subsec. (a)(18). Pub. L. 85-866, Sec. 64(d)(2), added par. (18).
1956 - Subsec. (a)(16). Act June 29, 1956, added par. (16).
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by section 1331(b)(1) of Pub. L. 109-58 applicable to
property placed in service after Dec. 31, 2005, see section 1331(d)
of Pub. L. 109-58, set out as an Effective Date note under section
179D of this title.
Amendment by section 1332(c) of Pub. L. 109-58 applicable to
qualified new energy efficient homes acquired after Dec. 31, 2005,
in taxable years ending after such date, see section 1332(f) of
Pub. L. 109-58, set out as a note under section 38 of this title.
Amendment by section 1333(b)(1) of Pub. L. 109-58 applicable to
property placed in service after Dec. 31, 2005, see section 1333(c)
of Pub. L. 109-58, set out as an Effective Date note under section
25C of this title.
Amendment by section 1335(b)(4) of Pub. L. 109-58 applicable to
property placed in service after Dec. 31, 2005, in taxable years
ending after such date, see section 1335(c) of Pub. L. 109-58, set
out as a note under section 23 of this title.
Amendment by section 1341(b)(2) of Pub. L. 109-58 applicable to
property placed in service after Dec. 31, 2005, in taxable years
ending after such date, see section 1341(c) of Pub. L. 109-58, set
out as an Effective Date note under section 30B of this title.
Amendment by section 1342(b)(2) of Pub. L. 109-58 applicable to
property placed in service after Dec. 31, 2005, in taxable years
ending after such date, see section 1342(c) of Pub. L. 109-58, set
out as an Effective Date note under section 30C of this title.
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by section 245(c)(2) of Pub. L. 108-357 applicable to
taxable years beginning after Dec. 31, 2004, see section 245(e) of
Pub. L. 108-357, set out as a note under section 38 of this title.
Amendment by section 338(b)(4) of Pub. L. 108-357 applicable to
expenses paid or incurred after Dec. 31, 2002, in taxable years
ending after such date, see section 338(c) of Pub. L. 108-357, set
out as an Effective Date note under section 179B of this title.
Amendment by section 339(d) of Pub. L. 108-357 applicable to
expenses paid or incurred after Dec. 31, 2002, in taxable years
ending after such date, see section 339(f) of Pub. L. 108-357, set
out as a note under section 38 of this title.
Amendment by section 413(c)(19) of Pub. L. 108-357 applicable to
taxable years of foreign corporations beginning after Dec. 31,
2004, and to taxable years of United States shareholders with or
within which such taxable years of foreign corporations end, see
section 413(d)(1) of Pub. L. 108-357, set out as an Effective and
Termination Dates of 2004 Amendments note under section 1 of this
title.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to taxable years beginning
after Dec. 31, 2001, see section 205(c) of Pub. L. 107-16, set out
as a note under section 38 of this title.
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 2000 AMENDMENT
Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec. 116(c)], Dec. 21,
2000, 114 Stat. 2763, 2763A-604, provided that: "The amendments
made by this section [enacting subpart C of part III of subchapter
U of this chapter, amending this section and sections 1223, 1394,
1400, and 1400B of this title, redesignating subpart C of part III
of subchapter U of this chapter as subpart D of part III of
subchapter U of this chapter, and renumbering sections 1397B and
1397C of this title as 1397C and 1397D, respectively, of this
title] shall apply to qualified empowerment zone assets acquired
after the date of the enactment of this Act [Dec. 21, 2000]."
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by section 312(d)(6) of Pub. L. 105-34 applicable to
sales and exchanges after May 6, 1997, with certain exceptions, see
section 312(d) of Pub. L. 105-34, set out as a note under section
121 of this title.
Section 313(c) of Pub. L. 105-34 provided that: "The amendments
made by this section [enacting section 1045 of this title and
amending this section and section 1223 of this title] shall apply
to sales after the date of enactment of this Act [Aug. 5, 1997]."
Amendment by section 701(b)(2) of Pub. L. 105-34 effective Aug.
5, 1997, see section 701(d) of Pub. L. 105-34, set out as a note
under section 39 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by section 1807(c)(5) of Pub. L. 104-188 applicable to
taxable years beginning after Dec. 31, 1996, see section 1807(e) of
Pub. L. 104-188, set out as an Effective Date note under section 23
of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13114(d) of Pub. L. 103-66 provided that: "The amendments
made by this section [enacting section 1044 of this title and
amending this section] shall apply to sales on and after the date
of the enactment of this Act [Aug. 10, 1993], in taxable years
ending on and after such date."
Amendment by section 13213(a)(2)(F) of Pub. L. 103-66 applicable
to expenses incurred after Dec. 31, 1993, see section 13213(e) of
Pub. L. 103-66 set out as a note under section 62 of this title.
Amendment by section 13261(f)(3) of 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 1992 AMENDMENT
Amendment by Pub. L. 102-486 applicable to property placed in
service after June 30, 1993, see section 1913(c) of Pub. L. 102-
486, set out as an Effective Date note under section 30 of this
title.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11812(b)(10) of Pub. L. 101-508 applicable
to property placed in service after Nov. 5, 1990, but not
applicable to any property to which section 168 of this title does
not apply by reason of subsec. (f)(5) of section 168, and not
applicable to rehabilitation expenditures described in section
252(f)(5) of Pub. L. 99-514, see section 11812(c) of Pub. L. 101-
508, set out as a note under section 42 of this title.
Amendment by section 11813(b)(19) 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 45K of this title.
EFFECTIVE DATE OF 1989 AMENDMENT
Section 502(c) of Pub. L. 101-194 provided that: "The amendments
made by this section [enacting section 1043 of this title and
amending this section and section 1223 of this title] shall apply
to sales after the date of the enactment of this Act [Nov. 30,
1989]."
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1006(j)(1)(B) of Pub. L. 100-647 applicable
in the case of obligations acquired after Dec. 31, 1987, with
exception allowing taxpayer to elect to have amendment apply to
obligations acquired after Oct. 22, 1986, see section 1006(j)(1)(C)
of Pub. L. 100-647, set out as a note under section 171 of this
title.
Amendment by section 1018(u)(22) of 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 section 241(b)(2) of Pub. L. 99-514 applicable to
expenditures paid or incurred after Dec. 31, 1986, except as
otherwise provided, see section 241(c) of Pub. L. 99-514, set out
as an Effective Date of Repeal note under former section 177 of
this title.
Amendment by section 701(e)(4)(D) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, with certain
exceptions and qualifications, see section 701(f) of Pub. L. 99-
514, set out as an Effective Date note under section 55 of this
title.
Amendment by section 1303(b)(3) of Pub. L. 99-514 effective Oct.
22, 1986, see section 1311(f) of Pub. L. 99-514, as amended, set
out as an Effective Date; Transitional Rules note under section 141
of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 43(a)(2) of Pub. L. 98-369 applicable to
taxable years ending after July 18, 1984, see section 44 of Pub. L.
98-369, set out as an Effective Date note under section 1271 of
this title.
Amendment by section 53(d)(3) of Pub. L. 98-369 applicable to
distribution after Mar. 1, 1984, in taxable years ending after such
date, see section 53(e)(1) of Pub. L. 98-369, set out as an
Effective Date note under section 1059 of this title.
Amendment by section 211(b)(14) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1983, see section 215 of
Pub. L. 98-369, set out as an Effective Date note under section 801
of this title.
Amendment by section 474(r)(23) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1983, and to carrybacks from
such years, see section 475(a) of Pub. L. 98-369, set out as a note
under section 21 of this title.
Amendment by section 541(b)(2) of Pub. L. 98-369 applicable to
sales of securities in taxable years beginning after July 18, 1984,
see section 541(c) of Pub. L. 98-369, set out as an Effective Date
note under section 1042 of this title.
EFFECTIVE DATE OF 1982 AMENDMENTS
Amendment by Pub. L. 97-354 applicable to taxable years beginning
after Dec. 31, 1982, see section 6(a) of Pub. L. 97-354, set out as
an Effective Date note under section 1361 of this title.
Amendment by section 201(c)(2) of Pub. L. 97-248 applicable to
taxable years beginning after Dec. 31, 1982, see section 201(e)(1)
of Pub. L. 97-248, set out as a note under section 5 of this title.
Amendment by section 205(a)(5)(B) of Pub. L. 97-248 applicable to
periods after Dec. 31, 1982, under rules similar to the rules of
section 48(m) of this title, with certain qualifications, see
section 205(c)(1) of Pub. L. 97-248, set out as an Effective Date
note under section 196 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by section 212(d)(2)(G) of Pub. L. 97-34 applicable to
expenditures incurred after Dec. 31, 1981, in taxable years ending
after that date, see section 212(e) of Pub. L. 97-34, set out as a
note under section 46 of this title.
Amendment by section 421(g) of Pub. L. 97-34 applicable with
respect to the estates of decedents dying after Dec. 31, 1981, see
section 421(k) of Pub. L. 97-34, set out as a note under section
2032A of this title.
EFFECTIVE DATE OF 1980 AMENDMENTS AND REVIVAL OF PRIOR LAW
Amendment by section 401(a) of Pub. L. 96-223 (repealing section
2005(a)(3) of Pub. L. 94-455 and section 702(r)(3) of Pub. L. 96-
500 and the amendments made thereby, which had amended this
section) applicable in respect of decedents dying after Dec. 31,
1976, and except for certain elections, this title to be applied as
if those repealed provisions had not been enacted, see section
401(b), (e) of Pub. L. 96-223, set out as a note under section 1023
of this title.
Amendment by Pub. L. 96-222 effective, except as otherwise
provided, as if it had been included in the provisions of the
Revenue Act of 1978, Pub. L. 95-600, to which such amendment
relates, see section 201 of Pub. L. 96-222, set out as an Effective
Date of 1980 Amendment note under section 32 of this title.
EFFECTIVE DATE OF 1978 AMENDMENTS
Section 101(c) of Pub. L. 95-618 provided that: "The amendments
made by this section [enacting section 23 of this title and
amending this section and sections 56 and 6096 of this title] shall
apply to taxable years ending on or after April 20, 1977."
Amendment by section 201(b) of Pub. L. 95-618 applicable with
respect to 1980 and later model year automobiles, see section
201(g) of Pub. L. 95-618, set out as an Effective Date note under
section 4064 of this title.
Amendment by section 601(b)(3) of Pub. L. 95-600 effective with
respect to corporations chartered after Dec. 31, 1978, and before
Jan. 1, 1984, see section 601(d) of Pub. L. 95-600, set out as a
note under section 172 of this title.
Amendment by section 702(r)(3) of Pub. L. 95-600 applicable to
estates of decedents dying after Dec. 31, 1976, see section
702(r)(5) of Pub. L. 95-600, set out as a note under section 2051
of this title.
Section 4(d) of Pub. L. 95-472 provided that: "The amendments
made by this section [amending this section and section 2032A of
this title] shall apply to involuntary conversions after December
31, 1976."
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1901(a)(123), (b)(1)(F)(ii), (21)(G),
(29)(A) of Pub. L. 94-455 applicable with respect to 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.
Section 1901(b)(30)(B) of Pub. L. 94-455 provided that: "The
amendment made by subparagraph (A)(i) [amending this section] shall
apply with respect to stock or securities acquired from a decedent
dying after the date of the enactment of this Act [Oct. 4, 1976]."
Amendment by section 2005(a)(3) of Pub. L. 94-455 applicable in
respect of decedents dying after Dec. 31, 1976, see section 2005(f)
of Pub. L. 94-455 set out as an Effective Date note under section
1015 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 231(c)(3) of Pub. L. 91-172 applicable to
taxable years beginning after Dec. 31, 1969, see section 231(d) of
Pub. L. 91-172, set out as a note under section 217 of this title.
Amendment by section 504(c)(4) of Pub. L. 91-172 applicable with
respect to exploration expenditures paid or incurred after Dec. 31,
1969, see section 504(d)(1) of Pub. L. 91-172, set out as a note
under section 243 of this title.
Amendment by section 516(c)(2)(B) of Pub. L. 91-172 applicable to
transfers after Dec. 31, 1969, see section 516(d)(3) of Pub. L. 91-
172, set out as an Effective Date note under section 1001 of this
title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by section 203(a)(3)(C) of Pub. L. 88-272 applicable in
case of property placed in service after Dec. 31, 1963, with
respect to taxable years ending after such date, and in case of
property placed in service before Jan. 1, 1964, with respect to
taxable years beginning after Dec. 31, 1963, see section 203(a)(4)
of Pub. L. 88-272, set out as a note under section 48 of this
title.
Amendment by section 225(j)(2) of Pub. L. 88-272 applicable in
respect of decedents dying after Dec. 31, 1963, see section 225(l)
of Pub. L. 88-272, set out as a note under section 316 of this
title.
Amendment by section 227(b)(5) of Pub. L. 88-272 applicable with
respect to amounts received or accrued in taxable years beginning
after Dec. 31, 1963, attributable to iron ore mined in such years,
see section 227(c) of Pub. L. 88-272, set out as a note under
section 272 of this title.
EFFECTIVE DATE OF 1962 AMENDMENT
Amendment by section 2(f) of Pub. L. 87-834 applicable with
respect to taxable years ending after Dec. 31, 1961, see section
2(h) of Pub. L. 87-834, set out as an Effective Date note under
section 46 of this title.
Amendment by section 8(g)(2) of Pub. L. 87-834 applicable with
respect to taxable years beginning after Dec. 31, 1962, see section
8(h) of Pub. L. 87-834, set out as a note under section 501 of this
title.
Amendment by section 12(b)(1) of Pub. L. 87-834 applicable with
respect to taxable years of foreign corporations beginning after
Dec. 31, 1962, and to taxable years of United States shareholders
within which or with which such taxable years of such foreign
corporations end, see section 12(c) of Pub. L. 87-834, set out as
an Effective Date note under section 951 of this title.
EFFECTIVE DATE OF 1959 AMENDMENT
Amendment by Pub. L. 86-69 applicable only with respect to
taxable years beginning after Dec. 31, 1957, see section 4 of Pub.
L. 86-69, set out as a note under section 381 of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by section 2(b) of Pub. L. 85-866 applicable with
respect to taxable years ending after December 31, 1957, but only
with respect to obligations acquired after such date, see section
2(c) of Pub. L. 85-866, set out as a note under section 75 of this
title.
Amendment by section 64(d)(2) of Pub. L. 85-866 applicable only
with respect to taxable years beginning after Dec. 31, 1957, see
section 64(e) of Pub. L. 85-866, set out as a note under section
172 of this title.
REPEALS
Section 2005(a)(3) of Pub. L. 94-455 and section 702(r)(3) of
Pub. L. 95-600, cited as credits to this section, and the
amendments made by those sections, were repealed by Pub. L. 96-223,
title IV, Sec. 401(a), 94 Stat. 299, resulting in the text of this
section reading as it read prior to enactment of sections
2005(a)(3) and 702(r)(3). See Effective Date of 1980 Amendments and
Revival of Prior Law note above.
SAVINGS PROVISION
For provisions that nothing in amendment by 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 45K of this title.
APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99-514 IN RELATION
TO TREATY OBLIGATIONS OF UNITED STATES
For applicability of amendment by section 701(e)(4)(D) of Pub. L.
99-514 notwithstanding any treaty obligation of the United States
in effect on Oct. 22, 1986, with provision that for such purposes
any amendment by title I of Pub. L. 100-647 be treated as if it had
been included in the provision of Pub. L. 99-514 to which such
amendment relates, see section 1012(aa)(2), (4) of Pub. L. 100-647,
set out as a note under section 861 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
CHANGE FROM RETIREMENT TO STRAIGHT LINE METHOD OF COMPUTING
DEPRECIATION IN CERTAIN CASES
Section 94 of Pub. L. 85-866, as amended by Pub. L. 99-514, Sec.
2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(a) Short Title. - This section may be cited as the 'Retirement-
Straight Line Adjustment Act of 1958'.
"(b) Making of Election. - Any taxpayer who held retirement-
straight line property on his 1956 adjustment date may elect to
have this section apply. Such an election shall be made at such
time and in such manner as the Secretary shall prescribe. Any
election under this section shall be irrevocable and shall apply to
all retirement-straight line property as hereinafter provided in
this section (including such property for periods when held by
predecessors of the taxpayer).
"(c) Retirement-Straight Line Property Defined. - For purposes of
this section, the term 'retirement-straight line property' means
any property of a kind or class with respect to which the taxpayer
or a predecessor (under the terms and conditions prescribed for him
by the Commissioner) for any taxable year beginning after December
31, 1940, and before January 1, 1956, changed from the retirement
to the straight line method of computing the allowance of
deductions for depreciation.
"(d) Basis Adjustments as of 1956 Adjustment Date. - If the
taxpayer has made an election under this section, then in
determining the adjusted basis on his 1956 adjustment date of all
retirement-straight line property held by the taxpayer, in lieu of
the adjustments for depreciation provided in section 1016(a)(2) and
(3) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954],
the following adjustments shall be made (effective as of his 1956
adjustment date) in respect of all periods before the 1956
adjustment date:
"(1) Depreciation sustained before march 1, 1913. - For
depreciation sustained before March 1, 1913, on retirement-
straight line property held by the taxpayer or a predecessor on
such date for which cost was or is claimed as basis and which
either -
"(A) Retired before changeover. - Was retired by the taxpayer
or a predecessor before the changeover date, but only if (i) a
deduction was allowed in computing net income by reason of such
retirement, and (ii) such deduction was computed on the basis
of cost without adjustment for depreciation sustained before
March 1, 1913. In the case of any such property retired during
any taxable year beginning after December 31, 1929, the
adjustment under this subparagraph shall not exceed that
portion of the amount attributable to depreciation sustained
before March 1, 1913, which resulted (by reason of the
deduction so allowed) in a reduction in taxes under the
Internal Revenue Code of 1986 or prior income, war-profits, or
excess-profits tax laws.
"(B) Held on changeover date. - Was held by the taxpayer or a
predecessor on the changeover date. This subparagraph shall not
apply to property to which paragraph (2) applies.
The adjustment determined under this paragraph shall be allocated
(in the manner prescribed by the Secretary) among all retirement-
straight line property held by the taxpayer on his 1956
adjustment date.
"(2) Property disposed of after changeover and before 1956
adjustment date. - For that portion of the reserve prescribed by
the Commissioner in connection with the changeover which was
applicable to property -
"(A) sold, or
"(B) with respect to which a deduction was allowed for
Federal income tax purposes by reason of casualty or 'abnormal'
retirement in the nature of special obsolescence,
if such sale occurred in, or such deduction was allowed for, a
period on or after the changeover date and before the taxpayer's
1956 adjustment date.
"(3) Depreciation allowable from changeover to 1956 adjustment
date. - For depreciation allowable, under the terms and
conditions prescribed by the Commissioner in connection with the
changeover, for all periods on and after the changeover date and
before the taxpayer's 1956 adjustment date.
This subsection shall apply only with respect to taxable years
beginning after December 31, 1955.
"(e) Effect on Period From Changeover to 1956 Adjustment Date. -
If the taxpayer has made an election under this section, then in
determining the adjusted basis of any retirement-straight line
property as of any time on or after the changeover date and before
the taxpayer's 1956 adjustment date, in lieu of the adjustments for
depreciation provided in section 1016(a)(2) and (3) of the Internal
Revenue Code of 1986 and the corresponding provisions of prior
revenue laws, the following adjustments shall be made:
"(1) For prescribed reserve. - For the amount of the reserve
prescribed by the Commissioner in connection with the changeover.
"(2) For allowable depreciation. - For the depreciation
allowable under the terms and conditions prescribed by the
Commissioner in connection with the changeover.
This subsection shall not apply in determining adjusted basis for
purposes of section 437(c) of the Internal Revenue Code of 1939.
This subsection shall apply only with respect to taxable years
beginning on or after the changeover date and before the taxpayer's
1956 adjustment date.
"(f) Equity Invested Capital, etc. - If an election is made under
this section, then (not withstanding the terms and conditions
prescribed by the Commissioner in connection with the changeover) -

"(1) Equity invested capital. - In determining equity invested
capital under sections 458 and 718 of the Internal Revenue Code
of 1939, accumulated earnings and profits as of the changeover
date, and as of the beginning of each taxable year thereafter,
shall be reduced by the depreciation sustained before March 1,
1913, as computed under subsection (d)(1)(B); and
"(2) Definition of equity capital. - In determining the
adjusted basis of assets for the purpose of section 437(c) of the
Internal Revenue Code of 1939 (and in addition to any other
adjustments required by such Code), the basis shall be reduced by
depreciation sustained before March 1, 1913 (as computed under
subsection (d)), together with any depreciation allowable under
subsection (e)(2) for any period before the year for which the
excess profits credit is being computed.
"(g) Definitions. - For purposes of this section -
"(1) Depreciation. - The term 'depreciation' means exhaustion,
wear and tear, and obsolescence.
"(2) Changeover. - The term 'changeover' means a change from
the retirement to the straight line method of computing the
allowance of deductions for depreciation.
"(3) Changeover date. - The term 'changeover date' means the
first day of the first taxable year for which the changeover was
effective.
"(4) 1956 adjustment date. - The term '1956 adjustment date'
means, in the case of any taxpayer, the first day of his first
taxable year beginning after December 31, 1955.
"(5) Predecessor. - The term 'predecessor' means any person
from whom property of a kind or class to which this section
refers was acquired, if the basis of such property is determined
by reference to its basis in the hands of such person. Where a
series of transfers of property has occurred and where in each
instance the basis of the property was determined by reference to
its basis in the hands of the prior holder, the term includes
each such prior holder.
"(6) The term 'Secretary' means the Secretary of the Treasury
or his delegate.
"(7) The term 'Commissioner' means the Commissioner of Internal
Revenue."
(!1) See References in Text note below.

(!2) So in original. The comma probably should be a semicolon.