Sec. 13204. Applicable recovery period for real property

457 words·~2 min read·/bill/115/hr/1/unknown/section-13204

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Subsection

(e)of section 168 is amended— in subparagraph

(E)of paragraph (3)— by striking clauses (iv), (v), and (ix), in clause (vii), by inserting and at the end, in clause (viii), by striking , and and inserting a period, and by redesignating clauses (vi), (vii), and (viii), as so amended, as clauses (iv), (v), and (vi), respectively, and by striking paragraphs (6), (7), and (8). Paragraph

(3)of section 168(b) is amended— by striking subparagraphs (G), (H), and (I), and by inserting after subparagraph

(F)the following new subparagraph: Qualified improvement property described in subsection (e)(6). . Subsection

(g)of section 168 is amended— in paragraph (1)— in subparagraph (D), by striking and at the end, in subparagraph (E), by inserting and at the end, and by inserting after subparagraph

(E)the following new subparagraph: any property described in paragraph (8), , and by adding at the end the following new paragraph: The property described in this paragraph shall consist of any nonresidential real property, residential rental property, and qualified improvement property held by an electing real property trade or business (as defined in 163(j)(7)(B)). . The table contained in subparagraph

(B)of section 168(g)(3) is amended— by inserting after the item relating to subparagraph (D)(ii) the following new item: (D)(v) 20 , and by striking the item relating to subparagraph (E)(iv) and all that follows through the item relating to subparagraph (E)(ix) and inserting the following: (E)(iv) 20 (E)(v) 30 (E)(vi) 35 . The table contained in subparagraph

(C)of section 168(g)(2) is amended by striking clauses

(iii)and

(iv)and inserting the following:

(iii)Residential rental property 30 years

(iv)Nonresidential real property 40 years

(v)Any railroad grading or tunnel bore or water utility property 50 years . Clause

(i)of section 168(k)(2)(A) is amended— in subclause (II), by inserting or after the comma, in subclause (III), by striking or at the end, and by striking subclause (IV). Section 168 is amended— in subsection (e), as amended by paragraph (1)(B), by adding at the end the following: The term qualified improvement property means any improvement to an interior portion of a building which is nonresidential real property if such improvement is placed in service after the date such building was first placed in service. Such term shall not include any improvement for which the expenditure is attributable to— the enlargement of the building, any elevator or escalator, or the internal structural framework of the building. , and in subsection (k), by striking paragraph (3). Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2017. The amendments made by subsection (a)(3)(A) shall apply to taxable years beginning after December 31, 2017.