Rev. Proc. 78-4
Rev. Proc. 78-4; 1978-1 C.B. 555
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund,
credit or abatement; determination of correct tax liability.
(Also Part I, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Superseded by Rev. Proc. 83-35
Section 1. Purpose.
The purpose of this Revenue Procedure is to establish under section 1.167(a)-11 of the Income Tax Regulations a new class 35.0, Manufacture of Machinery, and to prescribe an asset guideline period, asset depreciation range, and annual asset guideline repair allowance percentage for the class. This new class replaces asset guideline classes 35.1, Manufacture of Metalworking Machinery, 35.11, Manufacture of Metalworking Machinery-Special Tools, 35.2, Manufacture of Other Machines, and 35.21, Manufacture of Other Machines-Special Tools.
Its further purpose is to modify the definition of asset guideline class 34.0, Manufacture of Fabricated Metal Products, to remove assets used in the manufacture of non-electric heating apparatus from that class. These assets, plus assets used to manufacture turbines that power electrical generators and assets used in the production of space heating, air-conditioning and ventilating equipment, and office machines and non-electronic computing equipment are now classified in asset guideline class 36.1, Manufacture of Electrical Equipment. There is no change in the asset guideline periods, the depreciation ranges, or annual asset guideline repair allowance percentages for classes 34.0 or 36.1.
The new and the modified asset guideline classes, asset guideline periods, asset depreciation ranges, and annual asset guideline repair allowance percentages are set forth in Section 2 of this Revenue Procedure.
Section 2. Asset Guideline Classes, Asset Guideline Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages for Assets Used in the Manufacture of Machinery, Manufacture of Fabricated Metal Products, and the Manufacture of Electrical Equipment.
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Asset Depreciation
Range (in years) Annual
-------------------- Asset
Asset Asset Guideline
Guide- Guide- Repair
line Distribution of Lower line Upper Allowance
Class Assets Included Limit Period Limit Percentage
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34.0 Manufacture of Fabricated
Metal Products:
Includes assets used in
the production of metal
cans, tinware, fabricated
structural metal products,
metal stampings, and other
ferrous and non-ferrous
metal and wire products not
elsewhere classified. Does
not include assets used to
manufacture non-electric
heating apparatus ---------- 9.5 12 14.5 6
35.0 Manufacture of Machinery:
Includes assets used to
manufacture or rebuild
finished machinery and
equipment and replacement
parts thereof, such as
metal cutting and forming
machinery, dies, tools,
jigs and fixtures, general
industrial and special
industry machinery, farm
and garden machinery,
construction machinery,
mining and oil field
machinery, turbines (except
those that power electrical
generators or airborne
vehicles), and internal
combustion engines (except
those elsewhere classified).
Includes assets used by
manufacturers or rebuilders
of such finished machinery
and equipment in activities
elsewhere classified such as
the manufacture of castings,
forgings, electronic
products, rubber products,
or other manufacturing
classes if the products of
these activities are used by
the manufacturer primarily
in the manufacture,
assembly, or rebuilding of
the finished machinery and
equipment included in this
class. Does not include
assets used in mining,
assets used in the
manufacture of primary
ferrous and non-ferrous
metals, and those assets
included in asset guideline
classes 00.11 through 00.4 -- 8 10 12 11
36.1 Manufacture of Electrical
Equipment:
Includes assets used in
the production of machinery,
apparatus, and supplies for
the generation, storage,
transmission, transformation,
and utilization of electric
energy such as electrical
generating equipment,
electrical test and
distributing equipment,
electrical industrial
apparatus, domestic and
commercial appliances, space
heating (including electrical
and non-electric), air-
conditioning and ventilating
equipment, office machines
and non-electronic computing
equipment, electric lighting
and wiring equipment,
electronic components and
accessories, phonograph
records, storage batteries,
and ignition systems -------- 9.5 12 14.5 5.5
Section 3. Effect on Other Documents.
Rev. Proc. 77-10, 1977-1 C.B. 548, is modified by the establishment of the new class 35.0, Manufacture of Machinery, with an asset guideline period, asset depreciation range, and annual asset guideline repair allowance percentage for the class. This new class replaces asset guideline classes 35.1, Manufacture of Metalworking Machinery, 35.11, Manufacture of Metalworking Machinery-Special Tools, 35.2, Manufacture of Other Machines, and 35.21, Manufacture of Other Machines-Special Tools.
Rev. Proc. 77-10 is also modified by the revision of asset guideline classes 34.0, Manufacture of Fabricated Metal Products, and 36.1, Manufacture of Electrical Equipment.
Section 4. Effective Date.
The revisions set forth in this Revenue Procedure are effective for property placed in service in taxable years beginning after December 31, 1976.
1 Also release as IR-1925, dated December 30, 1977.
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund,
credit or abatement; determination of correct tax liability.
(Also Part I, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
