applicable percentage

(3) Additional depreciation before January 1, 1970 (A) In general If section 1250 property is disposed of after December 31, 1963 , and the amount determined under paragraph (1)(A)(ii) exceeds the sum of the amounts determined under paragraphs (1)(A)(i) and (2)(A)(i), then the applicable percentage of the lower of— (i) that portion of the additional depreciation attributable to periods before January 1, 1970 , in respect of the property, or (ii) the excess of the amount determined under paragraph (1)(A)(ii) over the sum of the amounts determined under paragraphs (1)(A)(i) and (2)(A)(i), shall also be treated as gain which is ordinary income. Such gain shall be recognized notwithstanding any other provision of this subtitle. (B) Applicable percentage For purposes of subparagraph (A), the term “applicable percentage” means 100 percent minus 1 percentage point for each full month the property was held after the date on which the property was held for 20 full months.

Source

26 USC § 1250(a)(3)


Scoping language

in this section
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