PUBLIC LAW 96-451—OCT. 14, 1980
94 STAT. 1989
TITLE III-REFORESTATION SEC. 301. AMORTIZATION OF REFORESTATION EXPENDITURES.
(a) IN GENERAL.—Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1954 (relating to itemized deductions for individuals and corporations) is amended by adding a t the end thereof the following new section: "SEC. 194. AMORTIZATION OF REFORESTATION EXPENDITURES.
26 USC 194.
"(a) ALLOWANCE OF DEDUCTION.—In the case of any qualified timber property with respect to which the taxpayer has made (in accordance with regulations prescribed by the Secretary) an election under this subsection, the taxpayer shall be entitled to a deduction with respect to the amortization of the amortizable basis of qualified timber property based on a period of 84 months. Such amortization deduction shall be an amount, with respect to each month of such period within the taxable year, equal to the amortizable basis 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 amortizable basis at the end of the month shall be computed without regard to the amortization deduction for such month. The 84month period shall begin on the first day of the first month of the second half of the taxable year in which the amortizable basis is acquired. "(b) LIMITATIONS.— "(1) MAXIMUM DOLLAR AMOUNT.—The
aggregate amount of amortizable basis acquired during the taxable year which may be taken into account under subsection (a) for such taxable year shall not exceed $10,000 ($5,000 in the case of a separate return by a married individual (as defined in section 143)). 26 USC 143. "(2) ALLOCATION OF DOLLAR LIMIT.— "(A) CONTROLLED GROUP.—For purposes of applying the
dollar limitation under paragraph (1)— "(i) all component members of a controlled group shall be treated as one taxpayer, and "(ii) the Secretary shall, under regulations prescribed by him, apportion such dollar limitation among the component members of such controlled group. For purposes of the preceding sentence, the term 'controlled group' has the meaning assigned to it by section 1563(a), 26 USC 1563. except that the phrase 'more than 50 percent' shall be substituted for the phrase 'at least 80 percent' each place it appears in section 1563(a)(1). "(B) PARTNERSHIPS.—In the case of a partnership, the dollar limitation contained in paragraph (1) shall apply with respect to the partnership and with respect to each partner. "(3) SECTION NOT TO APPLY TO TRUSTS.—This section shall not apply to trusts. "(4) ESTATES.—The benefit of the deduction for amortization provided by this section shall be allowed to estates in the same manner as in the case of an individual. The allowable deduction shall be apportioned between the income beneficiary and the fiduciary under regulations prescribed by the Secretary. Any amount so apportioned to a beneficiary shall be taken into account for purposes of determining the amount allowable as a deduction under this section to such beneficiary. "(c) DEFINITIONS AND SPECIAL RULE.—For purposes of this section—
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