Page:United States Statutes at Large Volume 83.djvu/748

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[83 STAT. 720]
[83 STAT. 720]
PUBLIC LAW 91-000—MMMM. DD, 1969

720

PUBLIC LAW 91-172-DEC. 30, 1969 "(e)

26^80^62^2°

[83 STAT.

ASSESSMENT OF DEFICIENCIES.— "(1) DEFICIENCY ATTRIBUTABLE TO GAIN.—If the taxpayer has

made an election under subsection (a) with respect to an approved disposition— " (A) the statutory period for the assessment of any deficiency, for any taxable year in which any part of the gain on such approved disposition is realized, attributable to the gain on such approved disposition shall not expire prior to the expiration of 3 years from the date the Secretary or his delegate is notified by the taxpayer (in such manner as the Secretary or his delegate may by regulations prescribe) of the construction, reconstruction, or acquisition of another qualified housing project or of the failure to construct, reconstruct, or acquire another qualified housing project, and " (B) such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of sec^^^^ 6212(c) or the provision of any other law or rule of law which would otherwise prevent such assessment. "(2) T I M E FOR ASSESSMENT OF OTHER DEFICIENCIES ATTRIBUTABLE TO ELECTION.—If a taxpayer has made an election under

Ante, p. 525.

Ante,

p. 652.

Ante,

p. 718.

subsection (a) with respect to an approved disposition and another qualified housing project is constructed, reconstructed, or acquired before the beginning of the last taxable year in which any part of the gain upon such approved disposition is realized, any deficiency, to the extent resulting from such election, for any taxable year ending before such last taxable year may be assessed (notwithstanding the provisions of section 6212(c) or 6501 or the provisions of any other law or rule of law which would otherwise prevent such assessment) at any time before the expiration of the period within which a deficiency for such last taxable year may be assessed." (b) AMENDMENTS TO SECTION 1250.— (1) Section 1250(d) (relating to exceptions and limitations) is amended by adding at the end thereof the following newparagraph: "(8) DISPOSITION OF QUALIFIED LOW-INCOME HOUSING.—If section 1250 property is disposed of and gain (determined without regard to this section) is not recognized in whole or in part under section 1039, then— " (A) RECOGNITION LIMIT.—The amount of gain recognized by the transferor under subsection (a) shall not exceed the greater of— " (i) the amount of gain recognized on the disposition (determined without regard to this section), or " (ii) the amount determined under subparagraph (B). "(B)

ADJUSTMENT WHERE INSUFFICIENT SECTION 1250 PROP-

ERTY IS ACQUIRED.—With respect to any transaction, the

amount determined under this subparagraph shall be the excess of— " (i) the amount of gain which would (but for this paragraph) be taken into account under subsection (a), over "(ii) the cost of the section 1250 property acquired in the transaction. " (C) BASIS OF PROPERTY ACQUIRED.—The basis of property acquired by the taxpayer, determined under section 1039(d), shall be allocated—