PUBLIC LAW 97-34—AUG. 13, 1981
95 STAT. 221
(1) by striking out "169, 184" each place it appears in paragraph (2) and inserting in lieu thereof "169,179,184", (2) by striking out "section 190" in paragraph (2) and inserting in lieu thereof "section 179,190", and (8) by striking out "169, 185" in paragraphs (2)(D) and (3)(D) and inserting in lieu thereof "169,179,185". (c) INSTALLMENT SALES.—Section 453 (relating to the installment
26 USC 453.
method) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: "(i) APPLICATION WITH SECTION 179.—
"(1) IN GENERAL.—In the case of an installment sale of section 179 property, subsection (a) shall not apply, and for purposes of this title, all payments to be received shall be deemed received in the year of disposition. "(2) LIMITATION.—Paragraph (1) shall apply only to the extent of the amount allowed as a deduction under section 179 with respect to the section 179 property." (d) TECHNICAL AMENDMENTS.—
(1) Paragraph (1) of section 263(a) (relating to capital expendi- 26 USC 263. tures) is amended— (A) by striking "or" at the end of subparagraph (F); (B) by striking out the period at the end of subparagraph (G) and inserting in lieu thereof a semicolon and "or', and (C) by adding at the end thereof the following new subparagraph: "(H) expenditures for which a deduction is allowed under section 179." (2) Subparagraph (A) of section 1033(g)(3) (relating to condem- 26 USC 1033. nation of real property held for productive use in trade or business or for investment) is amended by striking out "(relating to additional first-year depreciation allowance for small business)" and inserting in lieu thereof "(relating to election to expense certain depreciable business assets)". (3) The table of sections for part VI of subchapter B of chapter 1 is amended by striking out the item relating to section 179 and inserting in lieu thereof the following: "Sec. 179. Election to expense certain depreciable business assets." SEC. 203. AMENDMENTS RELATED TO DEPRECIATION. (a) RECOVERY DEDUCTION TREATED AS DEPRECIATION.—Subsection
(a) of section 167 (relating to depreciation) is amended by adding at 26 USC 167. the end thereof the following new sentence: "In the ceise of recovery property (within the meaning of section 168), the deduction allowable Ante, p. 204. under section 168 shall be deemed to constitute the reasonable allowance provided by this section, except with respect to that portion of the basis of such property to which subsection (k) applies." (b) TERMINATION OF CLASS LIFE SYSTEM.—Subsection (m) of section
167 (relating to class lives) is amended by adding at the end thereof the following new paragraph: "(4) TERMINATION.—This subsection shall not apply with respect to recovery property (within the meaning of section 168) placed in service after December 31, 1980." (c) RETIREMENT—REPLACEMENT—BETTERMENT METHOD OP DEPRECIATION.— (1) REPEAL OF SECTION I67(r).—Section 167 (relating to depreci-
ation) is amended by striking out subsection (r) and redesignating subsection (s) as subsection (r).
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