(1) Section 1250 capital gain treatment
In the case of section 1250 property which is disposed of during the taxable year, 20 percent of the excess (if any) of—
(A) the amount which would be treated as ordinary income if such property was section 1245 property, over
(B) the amount treated as ordinary income under section 1250 (determined without regard to this paragraph),
shall be treated as gain which is ordinary income under section 1250 and shall be recognized notwithstanding any other provision of this title. Under regulations prescribed by the Secretary, the provisions of this paragraph shall not apply to the disposition of any property to the extent section 1250(a) does not apply to such disposition by reason of section 1250(d).
(2) Reduction in percentage depletion
In the case of iron ore and coal (including lignite), the amount allowable as a deduction under section 613 with respect to any property (as defined in section 614) shall be reduced by 20 percent of the amount of the excess (if any) of—
(A) the amount of the deduction allowable under section 613 for the taxable year (determined without regard to this paragraph), over
(B) the adjusted basis of the property at the close of the taxable year (determined without regard to the depletion deduction for the taxable year).
(3) Certain financial institution preference items
The amount allowable as a deduction under this chapter (determined without regard to this section) with respect to any financial institution preference item shall be reduced by 20 percent.
(4) Amortization of pollution control facilities
If an election is made under section 169 with respect to any certified pollution control facility, the amortizable basis of such facility for purposes of such section shall be reduced by 20 percent.
(1) In general
The amount allowable as a deduction for any taxable year (determined without regard to this section)—
(A) under in the case of an integrated oil company, or
(B) under or 617(a),
shall be reduced by 30 percent.
(2) Amortization of amounts not allowable as deductions under paragraph (1)
The amount not allowable as a deduction under , 616(a), or 617(a) (as the case may be) for any taxable year by reason of paragraph (1) shall be allowable as a deduction ratably over the 60-month period beginning with the month in which the costs are paid or incurred.
(3) Dispositions
For purposes of section 1254, any deduction under paragraph (2) shall be treated as a deduction allowable under , 616(a), or 617(a) (whichever is appropriate).
(4) Integrated oil company defined
For purposes of this subsection, the term “integrated oil company” means, with respect to any taxable year, any producer of crude oil to whom subsection (c) of section 613A does not apply by reason of paragraph (2) or (4) of .
(5) Coordination with cost depletion
The portion of the adjusted basis of any property which is attributable to amounts to which paragraph (1) applied shall not be taken into account for purposes of determining depletion under section 611.
(1) Accelerated cost recovery deduction
Section 168 shall apply with respect to that portion of the basis of any property not taken into account under section 169 by reason of subsection (a)(4).
(2) 1250 Recapture
Subsection (a)(1) shall not apply to any section 1250 property which is part of a certified pollution control facility (within the meaning of ) with respect to which an election under section 169 was made.
In the case of a real estate investment trust (as defined in section 856), the difference between the amounts described in subparagraphs (A) and (B) of subsection (a)(1) shall be reduced to the extent that a capital gain dividend (as defined in ,
(1) Financial institution preference item
The term “financial institution preference item” includes the following:
[(A) Repealed.
(B) Interest on debt to carry tax-exempt obligations acquired after
(i) In general
In the case of a financial institution which is a bank (as defined in ), the amount of interest on indebtedness incurred or continued to purchase or carry obligations acquired after
(ii) Determination of interest allocable to indebtedness on tax-exempt obligations
(I) the taxpayer’s average adjusted basis (within the meaning of section 1016) of obligations described in clause (i), bears to
(II) such average adjusted basis for all assets of the taxpayer.
(iii) Interest
For purposes of this subparagraph, the term “interest” includes amounts (whether or not designated as interest) paid in respect of deposits, investment certificates, or withdrawable or repurchasable shares.
(iv) Application of subparagraph to certain obligations issued after
(2) Section 1245 and 1250 property
The terms “section 1245 property” and “section 1250 property” have the meanings given such terms by sections 1245(a)(3) and 1250(c), respectively.