①With regard to income tax for each year up to 1987 of a resident who, on or before December 31, 1985, used a house for residential use or existing housing prescribed in Article 41, paragraph (1) of the Former Act as the resident's own residence as provided in that paragraph, the provisions of Articles 41 through 41-3 of the Former Act are to govern.

②In the case where a resident, during the period from October 1, 1985 to December 31 of that year, commenced the work of newly building a house for residential use prescribed in Article 41, paragraph (1) of the Former Act, or acquired (excluding acquisition by gift) such a house for residential use that had not been used since its construction or existing housing prescribed in that paragraph, within the area where the Income Tax Act is in force, and used it as the resident's own residence within that period, if the resident has continued to use it as the resident's own residence on and after January 1, 1986, the resident may, with regard to income tax for 1986 and 1987, notwithstanding the provisions of the preceding paragraph, receive the application of the provisions of Articles 41 through 41-3 of the New Act at the resident's choice. In this case, in Article 41, paragraph (1) of the New Act, the phrase "a resident," is deemed to be replaced with "a resident, during the period from October 1, 1985 to December 31 of that year,", the phrase "newly builds" is deemed to be replaced with "commences the work of newly building", and the phrase "during the period from January 1, 1986 to December 31, 1987" is deemed to be replaced with "within that period".