to such prior owner (determined without regard to any disposition by such prior owner). (e) Rehabilitation expenditures treated as separate new building (1) In general Rehabilitation expenditures paid or incurred by the taxpayer with respect to any building shall be treated for purposes of this section as a separate new building. (2) Rehabilitation expenditures For purposes of paragraph (1)— (A) In general The term rehabilitation expenditures means amounts chargeable to capital account and incurred for property (or additions or improvements to property) of a character subject to the allowance for depreciation in connection with the rehabilitation of a building. (B) Cost of acquisition, etc., Not included Such term does not include the cost of acquiring any building (or interest therein) or any amount not permitted to be taken into account under paragraph (3) of subsection (d). (C) Certain relocation costs In the case of a rehabilitation of a building to which section 280B does not apply, costs relating to the relocation of occupants, including— (i) amounts paid to occupants, (ii) amounts paid to third parties for services relating to such relocation, and (iii) amounts paid for temporary housing for occupants, shall be treated as chargeable to capital account and taken into account as rehabilitation expenditures. (3) Minimum expenditures to qualify (A) In general Paragraph (1) shall apply to rehabilitation expenditures with respect to any building only if— (i) the expenditures are allocable to 1 or more middle-income units or substantially benefit such units, and (ii) the amount of such expenditures during any 24-month period meets the requirements of whichever of the following subclauses requires the greater amount of such expenditures: (I) The requirement of this subclause is met if such amount is not less than 20 percent of the adjusted basis of the building (determined as of the 1st day of such period and without regard to paragraphs (2) and (3) of section 1016(a)). (II) The requirement of this subclause is