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TITLE 26-INTERNAL REVENUE CODE case of a husband and wife who file a joint return under section 6013 for the taxable year, the limitation under the preceding sentence shall be $20,000 in lieu of $10,000. (c) Election (1) In general The election under this section for any tax- able year shall be made within the time pre- scribed by law (including extensions thereof) for filing the return for such taxable year. The election shall be made in such manner as the Secretary may by regulations prescribe. (2) Election irrevocable Any election made under this section may not be revoked except with the consent of the Secretary. d) Definitions and special rules (1) Section 179 property For purposes of this section, the term "sec- tion 179 property" means tangible personal property- (A) of a character subject to the allowance for depreciation under section 167. (B) acquired by purchase after December 31, 1957, for use in a trade or business or for holding for production of income, and (C) with a useful life (determined at the time of such acquisition) of 6 years or more. (2) Purchase defined For purposes of paragraph (1), the term "purchase" means any acquisition of proper- ty, but only if- (A) the property is not acquired from a person whose relationship to the person ac- quiring it would result in the disallowance of losses under section 267 or 707(b) (but, in applying section 267(b) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descen- dants), (B) the property is not acquired by one component member of a controlled group from another component member of the same controlled group, and (C) the basis of the property in the hands of the person acquiring it is not deter- mined- (I) in whole or in part by reference to the adjusted basis of such property in-the hands of the person from whom acquired, or (ii) under section 1014(a) (relating to property acquired from a decedent). (3) Cost For purposes of this section, the cost of property does not include so much of the basis of such property as is determined by ref- erence to the basis of other property held at any time by the person acquiring such prop- erty. (4) Section not to apply to trusts This section shall not apply to trusts. (5) Estates In the case of an estate, any amount appor- tioned to an heir, legatee, or devisee under section 167(h) shall not be taken into account in applying subsection (b) of this section to section 179 property of such heir, legatee, or devisee not held by such estate. (6) Dollar limitation of controlled group For purposes of subsection (b) of this sec- tion- (A) all component members of a con- trolled group shall be treated as one tax- payer, and (B) the Secretary shall apportion the dollar limitation contained in such subsec- tion (b) among the component members of such controlled group in such manner as he shall by regulations prescribe. (7) Controlled group defined For purposes of paragraphs (2) and (6), the term "controlled group" has the meaning as- signed to it by section 1563(a); except that, for such purposes, the phrase "more than 50 percent" shall be substituted for the phrase "at least 80 percent" each place it appears in section 1563(a)(1). (8) Dollar limitation in case of partnerships In the case of a partnership, the dollar limi- tation contained in the first sentence of sub- section (b) shall apply with respect to the partnership and with respect to each partner. (9) Adjustment to basis; when made In applying section 167(g), the adjustment under section 1016(a)(2) resulting by reason of an election made under this section with respect to any section 179 property shall be made before any other deduction allowed by section 167(a) is computed. (e) Regulations The Secretary shall prescribe such regula- tions as may be necessary to carry out the pur- poses of this section. (Added Pub. L. 85-866, title II, § 204(a), Sept. 2, 1958, 72 Stat. 1679, and amended Pub. L. 87- 834, § 13(c)(2), Oct. 16, 1962, 76 Stat. 1034; Pub. L. 91-172, title IV, §401(f), Dec. 30, 1969, 83 Stat. 603; Pub. L. 94-455, title II, § 213(a), title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1547, 1834.) AMENDMENTS 1976-Subsec. (c). Pub. L. 94-455, §1906(b)(13)(A), struck out in pars. (1) and (2) "or his delegate" follow- ing "Secretary". Subsec. (d)(6)(B). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secrettry". Subsec. (d)(8). Pub. L. 94-455, § 213(a), added par. (8) and redesignated existing provisions as par. (9). Subsec. (d)(9). Pub. L. 94-455. § 213(a), redesignated former par. (8) as par. (9). Subsec. (e). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". 1969-Subsec. d). Pub. L. 91-172 substituted refer- ence to component members of a controlled group for reference to members of an affiliated group in pars. (2)(B) and (b), and substituted definition of controlled group for definition of affiliated group in par. (7). 1962-Subsec. (d)(5). Pub. L. 87-834, § 13(c)(2)(A), substituted "section 167(h)" for "section 167(g)". Subsec. (d)(8). Pub. L. 87-834, § 13(c)(2)(B), substi- tuted "section 167(g)" for "section 167(f)". EFFECTIVE DATE OF 1976 AMENDMENT Enactment of subsec. (d)(8) and redesignation as subsec. (d)(9) of prior subsec. (d)(8) by section 213(a) of Pub. L. 94-455 applicable in the case of partnership Page 182