Taxable Years cluded in gross income for the taxable year in which received. Taxable Years gross income for the taxable year Sec. 123. (b) If a taxpayer exerSec. 123. (b) If a taxpayer exercises the election provided for in cises the election provided for in subsection (a) for any taxable year subsection (a) for any taxable year beginning after December 31, 1938, beginning after December 31, 1938, then the method of computing in- then the method of computing income so adopted shall be adhered come so adopted shall be adhered to with respect to all subsequent to with respect to all subsequent taxable years unless with the ap- taxable years unless with the approval of the Commissioner a proval of the Commissioner a change change to a different method is to a different method is authorized. authorized. Sec. 123, I. R. C., supra, added to I. R. C. by Sec. 223 (a), R. A. of 1939. Sec. 223 (c) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1938. Sec. 123. (c) Retroactivity See Sec. 123 (c), I. R. C., in 1942 column, added to I. R. C. by Sec. 154 (a), R. A. of 1942 and retroactive application thereof to prior taxable years in respect of election referred to in Sec. 123 (a), supra. Taxable Years Beginning before 1939 Taxable Years Taxable Years Taxable Years year, equal to the adjusted basis of period within the taxable year, period within the taxable year, the facility at the end of such month equal to the adjusted basis of the equal to the adjusted basis of the divided by the number of months facility at the end of such month facility at the end of such month (including the month for which divided by the number of months divided by the number of months the deduction is computed) remain- (including the month for which (including the month for which ing in the period. Such adjusted the deduction is computed) remain- the deduction is computed) remainbasis at the end of the month shall ing in the period. Such adjusted ing in the period. Such adjusted be computed without regard to the basis at the end of the month shall basis at the end of the month shall amortization deduction for such be computed without regard to the be computed without regard to the month. The amortization deduction amortization deduction for such amortization deduction for such above provided with respect to any month. The amortization deduction month. The amortization deduction month shall, except to the extent above provided with respect to any above provided with respect to any provided in subsection (g) of this month shall, except to the extent month shall, except to the extent section, be in lieu of the deduction provided in subsection (g) of this provided in subsection (g) of this with respect to such facility for section, be in lieu of the deduction section, be in lieu of the deduction such month provided by section 23 with respect to such facility for with respect to such facility for (1), relating to exhaustion, wear such month provided by section 23 such month provided by section 23 and tear, and obsolescence. The (1), relating to exhaustion, wear (1), relating to exhaustion, wear sixty-month period shall begin as and tear, and obsolescence. The and tear, and obsolescence. to any emergency facility, at the sixty-month period shall begin as sixty-month period shall begin as election of the taxpayer, with the to any emergency facility, at the to any emergency facility, at the month following the month in which election of the taxpayer, with the election of the taxpayer, with the the facility was completed or ac-month following the month in which month following the month in which quired, or with the succeeding tax- the facility was completed or ac- the facility was completed or acable year. quired, or with the succeeding tax- quired, or with the succeeding taxable year. able year. Sec. 124 (a), I. R. C., supra, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940, and amended by Sec. 155 (a), R. A. of 1942, to read as above. Sec. 155 (i) of said Act makes amendment effective as of Oct. 8, 1940, the date Sec. 124 was added to I. R. C. by Sec. 302, Second R. A. of 1940. For Sec. 124 (a), I. R. C., before amendment, see 1942 column. Sec. 124 (a), I. R. C., supra, as shown in ordinary type before being stricken through and before addition of language in italics, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124 (a), I. R. C., amended by Sec. 155 (a), R. A. of 1942, by omitting language in stricken through type and adding language in in italics. Sec. 155 (i) of said Act makes amendment effective as of Oct. 8, 1940, the date Sec. 124 was added to I. R. C. by Sec. 302, Second R. A. of 1940. Sec. 124 (a), I. R. C., supra, as shown in ordinary type before being stricken through, and before addition of language in italics, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124 (a), I. R. C., amended by Sec. 155 (a), R. A. of 1942, by omitting language in stricken through type and adding language in italics. Sec. 155 (1) of said Act makes amendment effective as of Oct. 8, 1940, the date Sec. 124 was added to I. R. C. by Sec. 302, Second R. A. of 1940. The Sec. 124. (b) Election of amor- Sec. 124. (b) Election of amor- Sec. 124. (b) Election of amortization. The election of the tax- tization.-The election of the tax- tization. The election of the taxpayer to take the amortization payer to take the amortization payer to take the amortization deduction and to begin the sixty-deduction and to begin the sixty-deduction and to begin the sixtymonth period with the month fol- month period with the month fol- month period with the month following the month in which the lowing the month in which the lowing the month in which the facility was completed or acquired facility was completed or acquired facility was completed or acquired shall (except as provided in sub-shall (except as provided in sub- shall (except as provided in subsection (d) (3)) be made only by a section (d) (3)) be made only by a section (d) (3) ) be made only by a statement to that effect in its return statement to that effect in its return statement to that effect in its return for the taxable year in which the for the taxable year in which the for the taxable year in which the facility was completed or ac-facility was completed or ac-facility was completed or acquired. Its election to take the quired. Its election to take the quired. Its election to take the amortization deduction and to begin amortization deduction and to begin amortization deduction and to begin such period with the taxable year such period with the taxable year such period with the taxable year succeeding such year shall be made succeeding such year shall be made succeeding such year shall be made only by a statement to that effect only by a statement to that effect only by a statement to that effect in its return for such succeeding in its return for such succeeding in its return for such succeeding taxable year. In the case of an taxable year. In the case of an taxable year. In the case of an emergency facility completed or emergency facility completed or emergency facility completed or acquired (1) after December 31, acquired (1) after December 31, acquired (1) after December 31, 1939, and before June 11, 1940, 1939, and before June 11, 1940, 1939, and before June 11, 1940, by a corporation, or (2) after by a corporation, or (2) after by a corporation, or (2) after December 31, 1939, and before December 31, 1939, and before December 31, 1939, and before Taxable Years Beginning in 1940 period within the taxable year, equal to the adjusted basis of the facility at the end of such month divided by the number of months (including the month for which the deduction is computed) remaining in the period. Such adjusted basis at the end of the month shall be computed without regard to the amortization deduction for such month. The amortization deduction above provided with respect to any month shall, except to the extent provided in subsection (g) of this section, be in lieu of the deduction with respect to such facility for such month provided by section 23 (1), relating to exhaustion, wear and tear, and obsolescence. The sixty-month period shall begin as to any emergency facility, at the election of the taxpayer, with the month following the month in which the facility was completed or acquired, or with the succeeding tax able year. Sec. 124 (a), I. R. C., supra, as shown in ordinary type, before being stricken through and before addition of language in italics, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124 (a), I. R. C., amended by Sec. 155 (a), R. A. of 1942, by omitting language in stricken through type and adding language in italics. Sec. 155 (1) of said Act makes amendment effective as of Oct. 8, 1940, the date Sec. 124 was added to I. R. C. by Sec. 302, Second R. A. of 1940. Sec. 124. (b) Election of amortization. The election of the taxpayer to take the amortization deduction and to begin the sixtymonth period with the month following the month in which the facility was completed or acquired shall (except as provided in subsection (d) (3)) be made only by a statement to that effect in its return for the taxable year in which the facility was completed or acquired. Its election to take the amortization deduction and to begin such period with the taxable year succeeding such year shall be made only by a statement to that effect in its return for such succeeding taxable year. In the case of an emergency facility completed or acquired (1) after December 31, 1939, and before June 11, 1940, by a corporation, or (2) after December 31, 1939, and before Taxable Years Taxable Years Taxable Years January 1, 1942, by a person January 1, 1942, by a person January 1, 1942, by a person other than a corporation, the tax- other than a corporation, the tax- other than a corporation, the taxpayer's election to take the amor- payer's election to take the amor- payer's election to take the amortization deduction and to begin tization deduction and to begin tization deduction and to begin such period with either the month such period with either the month such period with either the month following the month in which the following the month in which the following the month in which the facility was completed or acquired facility was completed or acquired facility was completed or acquired or with the succeeding taxable year or with the succeeding taxable year or with the succeeding taxable year shall be made only by a statement shall be made only by a statement shall be made only by a statement in writing to that effect to the in writing to that effect to the in writing to that effect to the Commissioner and shall be made Commissioner and shall be made Commissioner and shall be made before the expiration of six months before the expiration of six months before the expiration of six months after the date of enactment of the after the date of enactment of the after the date of enactment of the Revenue Act of 1942. Revenue Act of 1942. Revenue Act of 1942. Sec. 124 (b), I. R. C., supra, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940, and amended by Sec. 155 (b), R. A. of 1942, to read as above. Sec. 155 (i) of said Act makes amendment effective as of Oct. 8, 1940, the date Sec. 124 was added to I. R. C. by Sec. 302, Second R. A. of 1940. For Sec. 124 (b), I. R. C., before amendment, see 1942 column. 1 Sec. 124 (b), I. R. C., supra, as shown in ordinary type, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124 (b), I. R. C., amended by Sec. 155 (b), R. A. of 1942, by adding language in italics. Sec. 155 (i) of said Act makes amendment effective as of Oct. 8, 1940, the date Sec. 124 was added to I. R.. C. by Sec. 302, Second R. A. of 1940. Sec. 124 (b), I. R. C., supra, as shown in ordinary type, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124 (b), I. R. C., amended by Sec. 155 (b), R. A. of 1942, by adding language in italics. Sec. 155(1) of said Act makes amendment effective as of Oct. 8, 1940, the date Sec. 124 was added to I. R. C. by Sec. 302, Second R. A. of 1940. Sec. 124. (c) Termination of Sec. 124. (c) Termination of Sec. 124. (c) Termination of amortization deduction.-A tax-amortization deduction.-A tax- amortization deduction.-A taxpayer which has elected under sub-payer which has elected under sub- payer which has elected under subsection (b) to take the amortization section (b) to take the amortization section (b) to take the amortization deduction provided in subsection deduction provided in subsection deduction provided in subsection (a) may, at any time after making (a) may, at any time after making (a) may, at any time after making such election, discontinue the amor- such election, discontinue the amor- such election, discontinue the amortization deductions with respect tization deductions with respect tization deductions with respect to the remainder of the amortiza- to the remainder of the amortiza- to the remainder of the amortization period, such discontinuance to tion period, such discontinuance to tion period, such discontinuance to begin as of the beginning of any begin as of the beginning of any begin as of the beginning of any month specified by the taxpayer in month specified by the taxpayer in month specified by the taxpayer in a notice in writing filed with the a notice in writing filed with the a notice in writing filed with the Commissioner before the beginning Commissioner before the beginning Commissioner before the beginning of such month. The deduction of such month. The deduction of such month. The deduction provided under section 23 (1) provided under section 23 (1) provided under section 23 (1) shall be allowed, beginning with the shall be allowed, beginning with the shall be allowed, beginning with the first month as to which the amor-first month as to which the amor- first month as to which the amortization deduction is not appli- tization deduction is not appli- tization deduction is not applicable, and the taxpayer shall not cable, and the taxpayer shall not cable, and the taxpayer shall not (except as provided in subsection (except as provided in subsection (except as provided in subsection (d)) be entitled to any further (d)) be entitled to any further (d)) be entitled to any further amortization deductions with amortization deductions with re- amortization deductions with respect to such emergency facility. spect to such emergency facility. spect to such emergency facility. re Sec. 124. (d) Termination of amortization period. Sec. 124 (c), I. R. C., supra, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124. (d) Termination of amortization period. Sec. 124. (d) (1) If the Presi- Sec. 124. (d) (1) If the President has proclaimed the ending of dent has proclaimed the ending of the emergency period (as defined the emergency period (as defined in subsection (e)), or if the Sec- in subsection (e)), or if the Secretary of War or the Secretary retary of War or the Secretary of the Navy has, in accordance of the Navy has, in accordance with regulations prescribed by the with regulations prescribed by the President, certified to the Commis- President, certified to the Commis Sec. 124 (c), I. R. C., supra, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124. (d) Termination of amortization period. Sec. 124. (d) (1) If the President has proclaimed the ending of the emergency period (as defined in subsection (e)), or if the Secretary of War or the Secretary of the Navy has, in accordance with regulations prescribed by the President, certified to the Commis Taxable Years Beginning in 1940 January 1, 1942, by a person other than a corporation, the taxpayer's election to take the amortization deduction and to begin such period with either the month following the month in which the facility was completed or acquired or with the succeeding taxable year shall be made only by a statement in writing to that effect to the Commissioner and shall be made before the expiration of six months after the date of enactment of the Revenue Act of 1942. Sec. 124 (b), I. R. C., supra, as shown in ordinary type, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124 (b), I. R. C., amended by Sec. 155 (b), R. A. of 1942, by adding language in italics. Sec. 155 (i) of said Act makes amendment effective as of Oct. 8, 1940, the date Sec. 124 was added to I. R. C. by Sec. 302, Second R. A. of 1940. Sec. 124. (c) Termination of amortization deduction.-A taxpayer which has elected under subsection (b) to take the amortization deduction provided in subsection (a) may, at any time after making such election, discontinue the amortization deductions with respect to the remainder of the amortization period, such discontinuance to begin as of the beginning of any month specified by the taxpayer in a notice in writing filed with the Commissioner before the beginning of such month. The deduction provided under section 23 (1) shall be allowed, beginning with the first month as to which the amortization deduction is not applicable, and the taxpayer shall not (except as provided in subsection (d)) be entitled to any further amortization deductions with spect to such emergency facility. Sec. 124 (c), I. R. C., supra, re Sec. 124. (d) Termination of amortization period. Sec. 124. (d) (1) If the President has proclaimed the ending of the emergency period (as defined in subsection (e)), or if the Secretary of War or the Secretary of the Navy has, in accordance with regulations prescribed by the President, certified to the Commis |