Article 136Special Provisions on Calculation of Depreciation Allowance Where Non-Business Assets Acquired on or before December 31, 1952 Are Put to Business Use

Where a Resident puts an asset prescribed in the preceding Article that the Resident has continuously owned since on or before December 31, 1952 to use for the business set forth in that Article, the amount of the depreciation allowance of that asset after it is put to use for that business is to be calculated by treating, as the value of that asset after depreciation on the day on which it was put to use for that business, the amount equivalent to the amount that would be treated as the acquisition cost of that asset if that asset were deemed to have been the subject of a transfer of assets on that day and the provisions of Article 61, paragraph (3) (Acquisition Costs of Assets Acquired Prior to December 31, 1952) of the Act were applied, and the amount equivalent to the difference between the acquisition price of that asset under the provisions of Article 128 (Acquisition Price of Non-Business Assets Acquired on or before December 31, 1952 That Have Been Put to Business Use) and that value after depreciation is, for the application of the provisions of Article 134 (Special Provisions on Depreciation Allowance Based on Cumulative Amount of Depreciation of Depreciable Assets) and Article 134-2 (Special Provisions on Depreciation Allowance for Solid Buildings, etc.), deemed to be an amount that has been included in necessary expenses as the depreciation allowance of that asset in calculating the Resident's amount of real property income, amount of business income, amount of timber income or amount of miscellaneous income for each year.