§189 — Repealed. Pub. L. 99–514, title VIII, § 803(b)(1), Oct. 22, 1986, 100 Stat. 2355]
17 cases·1 followed·16 cited—6% support
Statute Text — 26 U.S.C. §189
[§ 189. Repealed. Pub. L. 99–514, title VIII, § 803(b)(1), Oct. 22, 1986, 100 Stat. 2355] Section, added Pub. L. 94–455, title II, § 201(a), Oct. 4, 1976, 90 Stat. 1525; amended Pub. L. 95–600, title VII, § 701(m)(1), Nov. 6, 1978, 92 Stat. 2907; Pub. L. 97–34, title II, § 262(a), (b), Aug. 13, 1981, 95 Stat. 264; Pub. L. 97–248, title II, § 207(a)–(d), Sept. 3, 1982, 96 Stat. 431, 432; Pub. L. 97–354, § 5(a)(24), Oct. 19, 1982, 96 Stat. 1694; Pub. L. 98–369, div. A, title I, § 93(a), title VII, § 712(c), July 18, 1984, 98 Stat. 614, 947, related to amortization of real property construction period interest and taxes. Statutory Notes and Related Subsidiaries Effective Date of RepealIf any interest costs incurred after Dec. 31, 1986, are attributable to costs incurred before Jan. 1, 1987, the repeal of this section is applicable to such interest costs only to the extent such interest costs are attributable to costs which were required to be capitalized under section 263 of the Internal Revenue Code of 1954 and which would have been taken into account in applying this section (as in effect before its repeal) or, if applicable, section 266 of such Code, see section 7831(d)(2) of Pub. L. 101–239, set out as an Effective Date note under section 263A of this title. Repeal applicable to costs incurred after Dec. 31, 1986, in taxable years ending after such date, except as otherwise provided, see section 803(d) of Pub. L. 99–514, set out as an Effective Date note under section 263A of this title.
17 Citing Cases
The statutoryprovisions for capitalization that are relevant to our analysis are section 263(a)(1), former section 189, and section 263A.
The statutoryprovisions for capitalization that are relevant to our analysis are section 263(a)(1), former section 189, and section 263A.
The statutoryprovisions for capitalization that are relevant to our analysis are section 263(a)(1), former section 189, and section 263A.
tensive planning and preparatory work as part of the construction permitting process. In 2006 . petitioners had survey work and core drilling done on the property to satisfy permitting requirements. Petitioners also SWhen discussing the enactment of sec. 189, dealing with the deductibility of construction period interest, the congressional committee stated: The conferees understand that the construction period commences with the date on which the construction of a building or other improvement b
According to the conference report, there previously was uncertainty as to whether certain taxes incurred in a trade or business or an income-producing activity could be deducted under section 164 or had to be capitalized under former section 189 or section 263.
None of this interest was capitalized under section 189 by petitioner.
According to the conference report, there previously was uncertainty as to whether certain taxes incurred in a trade or business or an income-producing activity could be deducted under section 164 or had to be capitalized under former section 189 or section 263.
None of this interest was capitalized under section 189 by petitioner.
Under section 266, section 263A(f), and section 189 (repealed for years after December 31, 1986), mortgage interest on improved real property is only capitalized during a period of construction or further improvement.