Sec. 3139. Depreciation recapture on gain from disposition of certain depreciable realty
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Subsection
(a)of section 1250 is amended to read as follows: Except as otherwise provided in this section, if section 1250 property is disposed of after December 31, 2014, the amount of gain with respect to such property which is treated as ordinary income shall be an amount equal to the lesser of— the sum of— the amount of additional depreciation attributable to periods before January 1, 2015, in respect of such property, and the amount of depreciation adjustments attributable to periods after December 31, 2014, in respect of such property, or the excess of the amount realized (or, in the case of a disposition other than a sale, exchange, or involuntary conversion, the fair market value of such property), over the adjusted basis of such property. . Section 267(e)(5)(D)(i) is amended to read as follows: any interest in— any section 1250 property with respect to which a mortgage is insured under section 221(d)(3) or 236 of the National Housing Act, or housing financed or assisted by direct loan or tax abatement under similar provisions of State or local laws and with respect to which the owner is subject to the restrictions described in section 1039(b)(1)(B) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990), dwelling units which, on the average, were held for occupancy by families or individuals eligible to receive subsidies under section 8 of the United States Housing Act of 1937, as amended, or under the provisions of State or local law authorizing similar levels of subsidy for lower-income families, any section 1250 property with respect to which a depreciation deduction for rehabilitation expenditures was allowed under section 167(k), or any section 1250 property with respect to which a loan is made or insured under title V of the Housing Act of 1949, and . Section 1250(b) is amended by striking paragraph
(4)and by redesignating paragraph
(5)as paragraph (4). Section 1250(c) is amended by striking For purposes of this section and inserting For purposes of this title Section 1250(d)(5)(B)(i) is amended by striking and the applicable percentage for the property had been 100 percent . Section 1250(d)(5)(B)(ii) is amended to read as follows: the amount of such gain (if any) to which section 751(b) applied. . Section 1250(d) is amended by striking paragraph (7). Section 1250 is amended by striking subsections
(e)and
(f)and by redesignating subsections
(g)and
(h)as subsections
(e)and (f), respectively. The amendments made by this section shall apply to dispositions after December 31, 2014.