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TITLE 26-INTERNAL REVENUE CODE Emcrrvs DATE OF 1969 AMENDMENT Amendment of subsec. (a) by section 516(c)(2)(B) of Pub. L. 91-172 applicable to transfers after Dec. 31. 1969, see section 561(d)(3) of Pub. L. 91-172, set out as an Effective Date note under section 1001 of this title. Amendment of subsec. (a)(10) by section 504(c)(4) of Pub. L 91-172 applicable with respect to exploration expenditures paid or incurred after Dec. 31, 1969, see section 504(d)(1) of Pub. L. 91-172, set out as an Effec- tive Date of 1969 Amendment note under section 243 of this title. Amendment of subsec. (c) by section 231(c)(3) of Pub. L. 91-172 applicable to taxable years beginning after Dec. 31, 1969, see section 231(d) of Pub. L. 91- 172, set out as an Effective Date of 1969 Amendment note under section 217 of this title. Emc'rxvE DATE OF 1964 AM.NDMENT Amendment of subsec. (a)(15) by Pub. L. 88-272 ap- plicable with respect to amounts received or accrued in taxable years beginning after Dec. 31, 1963, attribut- able to iron ore mined in such years, see section 227(c) of Pub. L. 08-272, set out as an Effective Date of 1964 Amendment note under section 272 of this title. Amendment of subsec, (a)(19) by Pub. L. 88-272 ap- plicable In case of property placed in service after Dec. 31, 1963, with respect to taxable years ending after such date, and in case of property placed in service before Jan. 1, 1964, with respect to taxable years be- ginning after Dec. 31, 1963, see section 203(a)(4) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 48 of this title. Amendment of subsec. (a)(21) by Pub. L. 88-272 ap- plicable in respect of decedents dying after Dec. 31, 1963, see section 225(l) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 316 of this title. EFrECTivE DATE OF 1962 AMENDMENT Subsec. (a)(3)(D) of this section applicable with re- spect to taxable years beginning after Dec. 31, 1962, see section 8(h) of Pub. L. 87-834, set out as an Effec- tive Date of 1962 Amendment note under section 821 of this title. Subsec. (a)(19) of this section applicable with respect to taxable years ending after Dec. 31, 1961, see section 2(h) of Pub. L. 87-834, set out as an Effective Date note under section 38 of this title. Subsec. (a)(20) of this section applicable with respect to taxable years of foreign corporations beginning after Dec. 31, 1962, and to taxable years of United States shareholders within which or with which such taxable years of such foreign corporations end, see section 12(c) of Pub. L. 87-834, set out as an Effective Date note under section 951 of tkiis title. EFFECTivE DATE OF 1959 AMENDMENT Amendment by Pub. L. 86-69 applicable only with respect to taxable years beginning after Dec. 31, 1957. see section 4 of Pub. L. 86-69, set out as an Effective Date note under section 801 of this title. ErrEcTvE DATE OF 1958 AMENDMENT Amendment of subsec. (a)(6) by Pub. L. 85-866 appli. cable with respect to taxable years ending after De- cember 31, 1957, but only with respect to obligations acquired after such date, see section 2(c) of Pub. L. 85- 866, set out as a note under section 75 of this title. Subsec. (a)(18) of this section added by Pub. L. 85- 866, applicable only with respect to taxable years be- ginning after Dec. 31, 1957, see section 64(e) of Pub. L. 85-866, set out as an Effective Date of 1958 Amend- ment note under section 172 of this title. CHANGE FOM RETIREMENT TO STRAIGHT LINE METHOD OF COMPUTING DEPREcIATIoN IN CERTAIN CASES Section 94 of Pub. L, 85-866 provided that: "(a) Short title.-This section may be cited as the 'Retirement-Straight Line Adjustment Act of 1958'. "(b) Making of election.-Any taxpayer who held re- tirement-straight line property on his 1956 adjustment date may elect to have this section apply. Such an election shall be made at such time and in such manner as the Secretary shall prescribe. Any election under this section shall be irrevocable and shall apply to all retirement-straight lin3 property as hereinafter provided in this section (including such property for periods when held by predecessors of the taxpayer). "(c) Retirement-straight line property defined.-For purposes of this section, the term 'retirement-straight line property' means any property of a kind or class with respect to which the taxpayer or a predecessor (under the terms and conditions prescribed for him by the Commissioner) for any taxable year beginning after December 31, 1940, and before January 1, 1956, changed from the retirement to the straight line method of computing the allowance of deductions for depreciation. "(d) Basis adjustments as of 1956 adjustment date.- If the taxpayer has made an election under this sec- tion, then in determining the adjusted basis on his 1956 adjustment date of all retirement-straight line property held by the taxpayer, in lieu of the adjust. ments for depreciation provided in section 1016 (a)(2) and (3) of the Internal Revenue Code of 1954, the fol- lowing adjustments shall be made (effective as of his 1956 adjustment date) in respect of all periods before the 1956 adjustment date: "(1) Depreciation sustained before March 1, 1913.- For depreciation sustained before March 1, 1913, on retirement-straight line property held by the taxpayer or a predecessor on such date for which cost was or is claimed as basis and which either- "(A) Retired before changeover.-Was retired by the taxpayer or a predecessor before the changeover date, but only if (i) a deduction was allowed in computing net income by reason of such retirement, and (ii) such deduction was computed on the basis of cost without adjustment for depreciation sustained before March 1, 1913. In the case of any such property retired during any taxable year beginning after December 31, 1929, the adjustment under this subparagraph shall not exceed that portion of the amount attributable to de. preciation sustained before March 1, 1913, which re- sulted (by reason of the deduction so allowed) in a re. duction in taxes under the Internal Revenue Code of 1954 or prior income, war-profits, or excess-profits tax laws. "(B) Held on changeover date.-Was held by the tax. payer or a predecessor on the changeover date. This subparagraph shall not apply to property to which paragraph (2) applies. The adjustment determined under this paragraph shall be allocated (in the manner prescribed by the Secretary) among all retirement-straight line property held by the taxpayer on his 1956 adjustment date. "(2) Property disposed of after changeover and before 1956 adjustment date.-For that portion of the reserve prescribed by the Commissioner in connection with the changeover which was applicable to proper- ty- "(A) sold, or "(B) with respect to which a deduction was allowed for Federal income tax purposes by reason of casualty or 'abnormal' retirement in the nature of special obso- lescence, if such sale occurred in, or such deduction was allowed for, a period on or after the changeover date and before the taxpayer's 1956 adjustment date. "(3) Depreciation allowable from changeover to 1956 adjustment date.-For depreciation allowable, under the terms and conditions prescribed by the Commis. sioner in connection with the changeover, for all peri- ods on and after the changeover date and before the taxpayer's 1956 adjustment date. This subsection shall apply only with respect to tax. able years beginning after December 31, 1955. "(e) Effect on period from changeover to 1956 ad- Justment date.-If the taxpayer has made an election under this section, then In determining the adjusted § 1016 Page 640