PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1525
TITLE I—SHORT TITLE AND AMENDMENT OF 1954 CODE SEC. 101. SHORT TITLE. T h i s Act may be cited as the " T a x Reform Act of 1976". SEC. 102. AMENDMENT OF 1954 CODE. Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the I n t e r n a l Revenue Code of 1954.
26 USC 1 note.
26 USC 1.
TITLE II—AMENDMENTS RELATED TO TAX SHELTERS SEC. 201. CAPITALIZATION AND AMORTIZATION OF REAL PROPERTY CONSTRUCTION PERIOD INTEREST AND TAXES. (a) IN GENERAL. — Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by a d d i n g at the end thereof the following new section: "SEC. 189. AMORTIZATION OF REAL PROPERTY CONSTRUCTION PERIOD INTEREST AND TAXES. "(a)
CAPITALIZATION
OF
CONSTRUCTION
PERIOD
INTEREST
AND
TAXES.—Except as otherwise provided in this section or in section 266 (relating to carrying charges), in the case of an individual, an electin<^ sipall business corporation (within the meaning of section 1371 (b)), or a personal holding company (within the meaning of section 542), no deduction shall be allowed for real property construction period interest and taxes. "(b)
AMORTIZATION or AIVIOUNTS CHARGED TO CAPITAL ACCOUNT. —
Any amount paid or accrued which would (but for subsection (a)) be allowable as a deduction for the taxable year shall be allowable for such taxable year and each subsequent amortization year in accordance with the following t a b l e: If the amount Is paid or accrued In a taxable year beginning i n — Nonresidential real property
Residential real property (other than low-Income housing)
Low-income housing
1976
1977 1S78 1979 1980 1981 after 1981
1978 1979 1980 1981 1982 1983 after 1983
1982 1983 1984 1985 1986 1987 after 1987
The percentage of such amount allowable for each amortization year shall be the following percentage of such amount see subsection (f) 25 20
14Jf U^ UH 10
" (c) AMORTIZATION Y E A R. —
" (1) IN GENERAL.—For purposes of this section, the term 'amortization year' means the taxable year in which the amount is paid or accrued, and each taxable year thereafter (beginning with the taxable year after the taxable year in which paid or accrued or, if later, the taxable year in which the real property is ready to be placed in service or is ready to be held for sale) until the full amount has been allowable as a deduction (or until the property is sold or exchanged).
26 USC 189.
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