Rev. Proc. 78-5
Rev. Proc. 78-5; 1978-1 C.B. 557
- 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Superseded by Rev.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 prescribe under section 1.167(a)-11 of the Income Tax Regulations a revised asset guideline class for assets used in the exploration for and production of petroleum and natural gas deposits to include assets used by petroleum and natural gas producers and others in the offshore pipeline transportation of oil and natural gas. These assets were formerly included in Class 46.0.
The revised asset guideline class, the associated asset guideline depreciation period and range, and annual asset guideline repair allowance percentage are set forth in Section 2 of this Revenue Procedure.
Section 2. Asset Guideline Class, Asset Guideline Depreciation Period and Range, and Annual Asset Guideline Repair Allowance Percentage for Assets Used in the Exploration for and Production of Petroleum and Natural Gas Deposits.
The asset guideline class, asset guideline depreciation period and range, and the annual asset guideline repair allowance percentage are prescribed as set forth below.
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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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13.2 Exploration for and
Production of Petroleum and
Natural Gas Deposits:
Includes assets used by
petroleum and natural gas
producers for drilling of
wells and production of
petroleum and natural gas,
including gathering pipelines
and related storage
facilities. Also includes
petroleum and natural gas
offshore transportation
facilities used by producers
and others consisting of
platforms (other than
drilling platforms classified
in Class 15.2), compression
and pumping equipment, and
gathering and transmission
lines to the first onshore
transshipment facility. The
assets used in the first
onshore transshipment
facility. The assets used in
the first onshore
transshipment facility are
also included and consist of
separation equipment (used
for separation of natural
gas, liquids, and solids),
compression or pumping
equipment (other than
equipment classified in Class
49.23), and liquid holding or
storage facilities (other
than those classified in
Class 49.25).
Does not include support
vessels --------------------- 11 14 17 4.5
Section 3. Effect on Other Documents.
Rev. Proc. 77-10, 1977-1 C.B. 548, is modified by the prescription of revised asset guideline class 13.2, Exploration for and Production of Petroleum and Natural Gas Deposits, with the associated asset guideline depreciation period and range and annual asset guideline repair allowance percentage as set forth in Section 2 of this Revenue Procedure. Class 13.2, as modified, now includes offshore transportation asset formerly included in Class 46.0.
Section 4. Effective Date.
The asset guideline class, asset guideline depreciation period and range, and the annual asset guideline repair allowance percentage for the activity class set forth in this Revenue Procedure are effective for property first placed in service in taxable years beginning after December 31, 1976.
1 Also released as News Release IR-1924, 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
