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TITLE 26-INTERNAL REVENUE CODE (D) Time for assessment of other deficiencies at- tributable to election If the election provided in subparagraph (A) is made by the taxpayer and such other property or such stock was purchased before the beginninL of the last taxable year in which any part of the gain upon such conversion is realized, any deficiency, to the extent resulting from such election, for any taxable year ending before such last taxable year may be assessed (notwith- standing the provisions of section 6212(c) or 6501 or the provisions of any other law or rule of law which would otherwise prevent such assessment) at any time before the ex- piration of the period within which a defi- ciency for such last taxable year may be as- sessed. E) Definitions For purposes of this paragraph- (i) Control The term "control" means the owner- ship of stock possessing at least 80 per- cent of the total combined voting power of all classes of stock entitled to vote and at least 80 percent of the total number of shares of all other classes of stock of the corporation. (ii) Disposition of the converted property The term "disposition of the converted property" means the destruction, theft, seizure, requisition, or condemnation of the converted property, or the sale or ex- change of such property under threat or imminence of requisition or condemna- tion. (b) Basis of property acquired through involuntary conversion If the property was acquired, after February 28, 1913, as the result of a compulsory or invol- untary conversion described in subsection (a)(1) or section 112(f)(2) of the Internal Revenue Code of 1939, the basis shall be the same as in the case of the property so converted, de- creased in the amount of any money received by the taxpayer which was not expended in ac- cordance with the provisions of law (applicable to the year in which such conversion was made) determining the taxable status of the gain or loss upon such conversion, and increased in the amount of gain or decreased in the amount of loss to the taxpayer recognized upon such con- version under the law applicable to the year in which such conversion was made. This subsec- tion shall not apply in respect of property ac- quired as a result of a compulsory or involun- tary conversion of property used by the taxpay- er as his principal residence if the destruction, theft, seizure, requisition, oK condemnation of such residence, or the sale or exchange of such residence under threat or imminence thereof, occurred after December 31, 1950, and before January 1, 1954. In the case of property pur- chased by the taxpayer in a transaction de- scribed in subsection (a)(3) which resulted in the nonrecognition of any part of the gain real- ized as the result of a compulsory or involun- tary conversion, the basis shall be the cost of such property decreased in the amount of the gain not so recognized; and if the property pur- chased consists of more than one piece of prop- erty, the basis determined under this sentence shall be allocated to the purchased properties in proportion to their respective costs. (c) Property sold pursuant to reclamation laws For purposes of this subtitle, if property lying within an irrigation project is sold or otherwise disposed of in order to conform to the acreage limitation provisions of Federal reclamation laws, such sale or disposition shall be treated as an involuntary conversion to which this section applies. (d) Livestock destroyed by disease For purposes of this subtitle, if livestock are destroyed by or on account of disease, or are sold or exchanged because of disease, such de- struction or such sale or exchange shall be treated as an involuntary conversion to which this section applies. (e) Livestock sold on account of drought For purposes of this subtitle, the sale or ex- change of livestock (other than poultry) held by a taxpayer for draft, breeding, or dairy pur- poses in excess of the number the taxpayer would sell if he followed his usual business practices shall be treated as an involuntary con- version to which this section applies if such livestock are sold or exchanged by the taxpayer solely on account of drought. (f) Condemnation of real property held for produc- tive use in trade or business or for investment (1) Special rule For purposes of subsection (a), if real prop- erty (not including stock in trade or other property held primarily for sale) held for pro- ductive use In trade or business or for invest- ment is (as the result of its seizure, requisi- tion, or condemnation, or threat or immi- nence thereof) compulsorily or involuntarily converted, property of a like kind to be held either for productive use in trade or business or for investment shall be treated as property similar or related in service or use to the property so converted. (2) Limitations Paragraph (1) shall not apply to the pur- chase of stock in the acquisition of control of a corporation described in subsection (a)(2)(A). (3) Election to treat outdoor advertising displays as real property (A) In general A taxpayer may elect, at such time and in such manner as the Secretary may pre- scribe, to treat property which constitutes an outdoor advertising display as real prop- erty for purposes of this chapter. The elec- tion provided by this subparagraph may not be made with respect to any property with respect to which the credit allowed by sec- tion 38 (relating to investment in certain de- preciable property) is or has been claimed or with respect to which an election under section 179(a) (relating to additional first- year depreciation allowance for small busi- ness) is in effect. (B) Election An election made under subparagraph (A) may not be revoked without the consent of the Secretary. § 1033 Page 647