Pub. L. 113-295, Div. A, Sec. 221(a)(35), struck Sec. 198A, effective Dec. 19, 2014.
I.R.C. § 198A(a) In General
A taxpayer may elect to treat any qualified disaster expenses which are paid or incurred
by the taxpayer as an expense which is not chargeable to capital account. Any expense
which is so treated shall be allowed as a deduction for the taxable year in which
it is paid or incurred.
I.R.C. § 198A(b) Qualified Disaster Expense
For purposes of this section, the term “qualified disaster expense” means any expenditure—
I.R.C. § 198A(b)(1)
which is paid or incurred in connection with a trade or business or with business-related
I.R.C. § 198A(b)(2)
I.R.C. § 198A(b)(2)(A)
for the abatement or control of hazardous substances that were released on account
of a federally declared disaster occurring before January 1, 2010,
I.R.C. § 198A(b)(2)(B)
for the removal of debris from, or the demolition of structures on, real property
which is business-related property damaged or destroyed as a result of a federally
declared disaster occurring before such date, or
I.R.C. § 198A(b)(2)(C)
for the repair of business-related property damaged as a result of a federally declared
disaster occurring before such date, and
I.R.C. § 198A(c) Other Definitions
For purposes of this section—
I.R.C. § 198A(c)(1) Business-Related Property
The term “business-related property” means property—
I.R.C. § 198A(c)(1)(A)
held by the taxpayer for use in a trade or business or for the production of income,
I.R.C. § 198A(c)(2) Federally Declared Disaster
The term “federally declared disaster” has the meaning given such term by section 165(h)(3)(C)(i).
I.R.C. § 198A(d) Deduction Recaptured As Ordinary Income On Sale, Etc.
Solely for purposes of section 1245, in the case of property to which a qualified disaster expense would have been capitalized
but for this section—
I.R.C. § 198A(d)(1)
the deduction allowed by this section for such expense shall be treated as a deduction
for depreciation, and
I.R.C. § 198A(d)(2)
such property (if not otherwise section 1245 property) shall be treated as section 1245 property solely for purposes of applying section 1245 to such deduction.
I.R.C. § 198A(e) Coordination With Other Provisions
Sections 198, 280B, and 468 shall not apply to amounts which are treated as expenses under this section.
I.R.C. § 198A(f) Regulations
The Secretary shall prescribe such regulations as may be necessary or appropriate
to carry out the purposes of this section.
(Added by Pub. L. 110-343, div. C, title VII, Sec. 707(a), Oct. 3, 2008, 122 Stat. 3765; repealed by Pub. L. 113-295, Div. A, title II, Sec. 221(a)(35), Dec. 19, 2014, 128 Stat. 4010.)
2014—Pub. L. 113-295, Div. A, Sec. 221(a)(35), repealed Sec. 198A.
Repeal of Sec. 198A by Pub. L. 113-295, Div. A, Sec. 221(a)(35), effective on the date of the enactment of this Act [Enacted:
Dec. 19, 2014].
Section 221(b)(2) of Pub. L. 113-295, Div. A, provided the following Savings Provision:
any provision amended or repealed by the amendments made by this section applied to—
any transaction occurring before the date of the enactment of this Act [Enacted: Dec.
any property acquired before such date of enactment, or
any item of income, loss, deduction, or credit taken into account before such date
of enactment, and
the treatment of such transaction, property, or item under such provision would (without
regard to the amendments or repeals made by this section)
affect the liability for tax for periods ending after date of enactment, nothing in
the amendments or repeals made by this section shall be construed to affect the treatment
of such transaction, property, or item for purposes of determining liability for tax
for periods ending after such date of enactment.”
Effective for amounts paid or incurred after December 31, 2007, in connection with
disasters declared after such date.
Sec. 712 of Pub. L. 110-343, Div. C, as amended by Pub. L. 113-295, Div. A, Sec. 211(c)(3), provided that:
“SEC. 712. COORDINATION WITH HEARTLAND DISASTER RELIEF.—The amendments made by this
subtitle, other than the amendments made by sections 706(a)(2), 710, and 711, shall
not apply to any disaster described in section 702(b)(1)(A), or to any expenditure
or loss resulting from such disaster.”