Otherwise allowable deduction.
Otherwise allowable deduction.
(i) The determination of the amount of the depreciation deduction otherwise allowable under section 167 is made as if the taxpayer had depreciated the property under section 167 for each year of its useful life for which the property has been held. This amount may be determined under § 1.167(a)–(11)(c) if the property is eligible property (as defined in § 1.167(a)–11(b)(2)) and, during the taxable year in which the property was first placed in service, the taxpayer—
(a) Has made an election under § 1.167(a)–11(f) with respect to eligible property first placed in service in such taxable year, or
(b) Has placed no eligible property in service other than property described in § 1.167(a)–11(b)(5) (iii), (iv), or (v).
(ii) If a deduction for depreciation has not been taken by the taxpayer in any taxable year under section 167 with respect to the facility—
(a) There is to be used the useful life and salvage value which would have been proper under section 167.
(b) Such useful life and salvage value is determined by taking into account for each taxable year the same facts and circumstances as would have been taken into account if the taxpayer had used such method throughout the period the property has been held, and
(c) The date the property is placed in service is, for purposes of this section, deemed to be the first day of the first month for which the amortization deduction is taken with respect to the facility under section 169.
(iii) For purposes of section 57(a)(4) and this paragraph, if the deduction for amortization or depreciation which would have been allowable had no election been made under section 169 would have been—
(a) An amortization deduction based on the term of a leasehold or
(b) A depreciation deduction determined by reference to section 611,
(iv) If a facility is subject to amortization under section 169 for less than the entire taxable year, the otherwise allowable depreciation deduction under section 167 shall be determined only with regard to that portion of the taxable year during which the election under section 169 is in effect.
(v) If less than the entire adjusted basis of a facility is subject to amortization under section 169, the otherwise allowable depreciation deduction under section 167 shall be determined only with regard to that portion of the adjusted basis subject to amortization under section 169.