Hospital Corporation of America and Subsidiaries - Page 64

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          the other hand, to constitute 19-year real property, the property           
          must be section 1250 class property.  Section 1250 class property           


          32  (...continued)                                                          
               property is tangible and has an adjusted basis in which                
               there are reflected adjustments described in paragraph (2)             
               for a period in which such property (or other property)--              
                              (i) was used as an integral part of                     
                         manufacturing, production, or extraction or of               
                         furnishing transportation, communications,                   
                         electrical energy, gas, water, or sewage disposal            
                         services, or                                                 
                              (ii) constituted a research facility used in            
                         connection with any of the activities referred to            
                         in clause (i), or                                            
                              (iii) constituted a facility used in                    
                         connection with any of the activities referred to            
                         in clause (i) for the bulk storage of fungible               
                         commodities (including commodities in a liquid or            
                         gaseous state),                                              
                         (C) an elevator or an escalator,                             
                         (D) so much of any real property (other than any             
                    property described in subparagraph (B)) which has an              
                    adjusted basis in which there are reflected adjustments           
                    for amortization under section 169, 179, 185, 188, 190,           
                    193, or 194,                                                      
                         (E) a single purpose agricultural or horticultural           
                    structure (as defined in section 48(p)), or                       
                         (F) a storage facility (not including a building             
                    or its structural components) used in connection with             
                    the distribution of petroleum or any primary product of           
                    petroleum.                                                        

          33   For taxable years ended 1984 and 1985, sec. 168(g)(3)                  
          provides as follows:                                                        
               The term "section 1245 class property" means tangible                  
               property described in section 1245(a)(3) other than                    
               subparagraphs (C) and (D).                                             



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