Treatment of ex- changed passenger automobile Sample Clauses

Treatment of ex- changed passenger automobile. For a tax- able year in which a transaction de- scribed in section 1031 or section 1033 occurs, the unadjusted basis of an ex- changed or converted passenger auto- mobile shall cease to be taken into ac- count in determining any recovery de- ductions allowable under section 168 as of the beginning of the taxable year in which the exchange or conversion oc- curs. Thus, no recovery deduction is al- lowable for the exchanged or converted automobile in the year of the exchange or conversion.
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