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TITLE 26-INTERNAL REVENUE CODE allowance was based on discovery value or a percentage of income, then the adjustment for depletion for such year shall be based on the depletion which would have been allowa- ble for such year if computed without refer- ence to discovery value or a percentage of income; (3) in respect of any period- (A) before March 1, 1913, (B) since February 28, 1913, during which such property was held by a person or an organization not subject to income taxation under this chapter or prior income tax laws, (C) since February 28, 1913, and before January 1, 1958, during which such proper- ty was held by a person subject to tax under part I of subchapter L (or the correspond- ing provisions of prior income tax laws), to the extent that paragraph (2) does not apply, and (D) since February 28, 1913, during which such property was held by a person subject to tax under part II of subchapter L (or the corresponding provisions of prior income tax laws), to the extent that paragraph (2) does not apply, for exhaustion, wear and tear, obsolescence, amortization, and depletion, to the extent sustained; (4) in the case of stock (to the extent not provided for in the foregoing paragraphs) for the amount of distributions previously made which, under the law applicable to the year in which the distribution was made, either were tax-free or were applicable in reduction of basis (not including distributions made by a corporation which was classified as a personal service corporation under the provisions of the Revenue Act of 1918 (40 Stat. 1057), or the Revenue Act of 1921 (42 Stat. 227), out of its earnings or profits which were taxable in accordance with the provisions of section 218 of the Revenue Act of 1918 or 1921); (5) in the case of any bond (as defined in section 171(d)) the interest on which is wholly exempt from the Lax imposed by this subtitle, to the extent of the amortizable bond premium disallowable as a deduction pursuant to section 171(a)(2), and in the case of any other bond (as defined in section 171(d)) to the extent of the deductions al- lowable pursuant to section 171(a)(1) with re- spect thereto; (6) in the case of any municipal bond (as de- fined in section 75(b)), to the extent provided in section 75(a)(2); (7) in the case of a residence the acquisition of which resulted, under section 1034, in the nonrecognition of any part of the gain real- ized on the sale, exchange, or involuntary conversion of another residence, to the extent provided in section 1034(e); (8) in the case of property pledged to the Commodity Credit Corporation, to the extent of the amount received as a loan from the Commodity Credit Corporation and treated by the taxpayer as income for the year in which received pursuant to section 77, and to the extent of any deficiency on such loan with respect to which the taxpayer has been relieved from liability; (9) for amounts allowed as deductions as de- ferred expenses under section 616(b) (relating to certain expenditures in the development of mines) and resulting in a reduction of the taxpayer's taxes under this subtitle, but not less than the amounts allowable under such section for the taxable year and prior years; [(10) Repealed. Pub. L. 94-455, title XIX, § 1901(b)(21)(G), Oct. 4, 1976, 90 Stat. 1798] (11) for deductions to the extent disallowed under section 268 (relating to sale of land with unharvested crops), notwithstanding the provisions of any other paragraph of this sub- section; (12) to the extent provided in section 28(h) of the Internal Revenue Code of 1939 in the case of amounts specified in a shareholder's consent made under section 28 of such code; (13) to the extent provided in section 551(e) in the case of the stock of United States shareholders in a foreign personal holding company; (14) for amounts allowed as deductions as deferred expenses under section 174(b)(1) (re- lating to research and experimental expendi- tures) and resulting in a reduction of the tax- payers' taxes under this subtitle, but not less than the amounts allowable under such sec- tion for the taxablp :ear and prior years; (15) for deductions to the extent disallowed tnder section 272 (relating to disposal of coal or domestic iron ore), notwithstanding the provisions of any other paragrarh oi this sub- section; (16) for amounts allowed as deductions for expenditures treated as deferred expenses under section 177 (relating to trademark and trade name expenditures) and resulting in a reduction of the taxpayer's taxes under this subtitle, but not less than the amounts al- lowable under such section for the taxable year and prior years; (17) in the case of any evidence of indebted- ness referred to in section 818(b) (relating to amortization of premium and accrual of dis- count in the case of life insurande compa- nies), to the extent of the adjustments re- quired under section 818(b) (or the corre- sponding provisions of prior income tax laws) for the taxable year and all prior taxable years; (18) to the extent provided in section 1376 in the case of stock of, and indebtedness owing, shareholders of an electing small busi- ness corporation (as defined in section 1371(b)); (19) to the extent provided in section 961 in the case of stock in controlled foreign corpo- rations (or foreign corporations which were controlled foreign corporations) and of prop- erty by reason of which a person is considered as owning such stock; (20) for amounts allowed as deductions for payments made on account of transfers of franchises, trademarks, or trade names under section 1253(d)(2); E(21) Repealed] [(22) Renumbered (20)] (23) to the extent provided in section 1023, relating to carryover basis for certain proper- ty acquired from a decedent dying after De- cember 31, 1976. 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