①Where, for a Depreciable Asset set forth in the following items that a Resident holds, the sum of the cumulative amount of the amounts 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 the year preceding that year and earlier years and the amount equivalent to the amount of the depreciation allowance for that year calculated for that Depreciable Asset by the method of depreciation prescribed in the relevant item exceeds the amount specified in the relevant item according to the category of Depreciable Asset set forth in that item, then, for that Depreciable Asset, notwithstanding the provisions of Article 131 through the preceding Article, the amount obtained by deducting the excess portion from the amount equivalent to that amount of depreciation allowance is the amount of depreciation allowance for that year.

②Where the cumulative amount of the amounts included in necessary expenses, as the depreciation allowance of a Depreciable Asset set forth in item (i), (a) or (c) of the preceding paragraph that a Resident holds (limited to one for which the method of depreciation prescribed in that item has been adopted as the method of depreciation to be followed), in calculating the Resident's amount of real property income, amount of business income, amount of timber income or amount of miscellaneous income for the year preceding that year and earlier years has reached the amount provided for in (a) or (c) of that item for that Depreciable Asset, then, for that Depreciable Asset, notwithstanding the provisions of Article 131 through the preceding Article and paragraph (1), the amount calculated by dividing by five the amount obtained by deducting the amount provided for in (a) or (c) of that item and one yen from the acquisition price of that Depreciable Asset (or, where the sum of that calculated amount and the cumulative amount of the amounts included in necessary expenses, as the depreciation allowance of that Depreciable 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 the year preceding that year and earlier years exceeds the amount obtained by deducting one yen from the acquisition price of that Depreciable Asset, the amount obtained by deducting the excess portion) is the amount of the depreciation allowance for that year.

③The provisions of Article 132 (Special Provisions on Depreciation Allowance for Depreciable Assets, etc. Put to Business Use in the Middle of the Year) apply mutatis mutandis to a Depreciable Asset to which the provisions of the preceding paragraph apply. In this case, the phrase "the preceding Article" in paragraph (1) of that Article is deemed to be replaced with "Article 134, paragraph (2)".

①Where, among the following Depreciable Assets that a Resident holds (limited to those to which the provisions of paragraph (1), item (i) of the preceding Article apply), one for which the cumulative amount of the amounts included in necessary expenses as its depreciation allowance in calculating the Resident's amount of real property income, amount of business income, amount of timber income or amount of miscellaneous income for the year preceding that year and earlier years has reached the amount equivalent to 95 percent of its acquisition price is still being used for the Resident's business that is to generate such income, then, notwithstanding the provisions of Article 131 through the preceding Article, only while that asset is still being used for that business, the amount calculated by dividing the amount obtained by deducting one yen from the amount equivalent to 5 percent of the acquisition price of that asset by the number of years equivalent to three-tenths of the useful life specified by Ministry of Finance Order prescribed in Article 129 (Useful Life, Depreciation Rates, etc. of Depreciable Assets) for that asset may be 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 on or after that year; provided, however, that this does not apply to the excess portion where the cumulative amount of that depreciation allowance has come to exceed the amount equivalent to the amount obtained by deducting that one yen.

②Where, in calculating the number of years equivalent to three-tenths of the useful life under the provisions of the preceding paragraph, a fraction of less than one year arises, it is to be treated as one year.

③The provisions of Article 132 (Special Provisions on Depreciation Allowance for Depreciable Assets, etc. Put to Business Use in the Middle of the Year) apply mutatis mutandis to a Depreciable Asset to which the provisions of paragraph (1) apply. In this case, the phrase "the preceding Article" in paragraph (1) of that Article is deemed to be replaced with "Article 134-2, paragraph (1)".

Where a Resident puts a house or other asset that the Resident holds, which depreciates through use or the passage of time and has not been used for business that is to generate real property income, business income, timber income or miscellaneous income, to use for that business (excluding a case that falls under the provisions of the following 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 38, paragraph (2) (Acquisition Costs Deducted to Calculate Capital Gains) of the Act were applied, and the amount equivalent to the difference between the acquisition price of that asset calculated in accordance with the provisions of Article 126 (Acquisition Price of Depreciable Assets) and Article 127, paragraph (2) (Special Provisions on Acquisition Price of Capital Expenditure) 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 the preceding Article, 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.

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.

In addition to what is provided for in the preceding three Divisions (Methods of Depreciation, etc. of Depreciable Assets), the details concerning the calculation of the depreciation allowance of Depreciable Assets are specified by Ministry of Finance Order.

①The amount calculated as provided by Cabinet Order prescribed in Article 50, paragraph (1) (Calculating Depreciation Allowances for Deferred Assets; Depreciation Methods) of the Act is, according to the categories of Deferred Assets set forth in the following items, the amount specified in the relevant item.

②The number of months set forth in the preceding paragraph is calculated according to the calendar; a division of less than one month is counted as one month.

③Where a Resident has stated in the Tax Return for that year, as the amount to be included in necessary expenses in calculating the amount of real property income, amount of business income, amount of timber income or amount of miscellaneous income for that year with respect to a Deferred Asset set forth in paragraph (1), item (i), an amount within the range of the amount of that Deferred Asset, the amount set forth in that item is, notwithstanding the provisions of that item, the amount stated as that amount.