Supplementary Provisions, Article 5Transitional Measures Concerning the Inclusion in Necessary Expenses of the Acquisition Price of Small-Value Depreciable Assets, etc.

①Where, on the Effective Date, an individual holds Former Small-Value Depreciable Assets (meaning those Depreciable Assets put to use in the individual's business before January 1, 1974 for which the acquisition price prescribed in Article 138 (Inclusion in Necessary Expenses of the Acquisition Price of Small-Value Depreciable Assets) of the Former Order is less than 50,000 yen and for which there is an acquisition price after depreciation on that date), the amount equivalent to that acquisition price after depreciation of those Former Small-Value Depreciable Assets is, notwithstanding Article 49, paragraph (1) (Calculating Depreciation Allowances for Depreciable Assets; Depreciation Methods) of the Income Tax Act, to be included in necessary expenses in calculating the amount of real property income, the amount of business income, the amount of timber income or the amount of miscellaneous income for 1974.

②The provisions of the preceding paragraph apply mutatis mutandis where, on the Effective Date, an individual holds Former Small-Value Deferred Assets (meaning those expenses prescribed in Article 139 (Inclusion in Necessary Expenses of Small-Amount Expenses That Become Deferred Assets) of the Former Order that were paid before January 1, 1974, for which the amount paid is less than 50,000 yen and for which there is an amount after depreciation on that date). In this case, the phrase "Article 49, paragraph (1) (Calculating Depreciation Allowances for Depreciable Assets; Depreciation Methods) of the Income Tax Act" in the preceding paragraph is deemed to be replaced with "Article 50, paragraph (1) (Calculating Depreciation Allowances for Deferred Assets; Depreciation Methods) of the Income Tax Act".