Sec. 13104. Modification of rules for uniform capitalization of certain expenses
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/bill/115/hr/1/eas/section-13104·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 263A(b) is amended by striking all that follows paragraph
(1)and inserting the following new paragraphs: Real or personal property described in section 1221(a)(1) which is acquired by the taxpayer for resale. This section shall not apply to any taxpayer who meets the gross receipts test under section 448(c) for the taxable year (or, in the case of a sole proprietorship, who would meet such test if such proprietorship were a corporation), other than a tax shelter prohibited from using the cash receipts and disbursements method of accounting under section 448(a)(3). For purposes of this subsection, the term tangible personal property shall include a film, sound recording, video tape, book, or similar property. If a taxpayer changes its method of accounting because this section does not apply to the taxpayer by reason of the exception under paragraph
(3)or this section applies to the taxpayer because such exception no longer applies to the taxpayer— such change shall be treated as initiated by the taxpayer, and such change shall be treated as made with the consent of the Secretary. . The amendments made by this section shall apply to taxable years beginning after December 31, 2017.