Rev. Proc. 73-24
Rev. Proc. 73-24; 1973-2 C.B. 475
- 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.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Superseded by Rev. Proc. 77-10
Section 1. Purpose.
The purpose of this Revenue Procedure is to prescribe under section 1.167(a)-11 and section 1.167(a)-12 of the Income Tax Regulations new supplementary guideline classes, asset depreciation periods and ranges, and asset guideline class repair allowance percentages for assets used in the provision of cable television (community antenna television, CATV) services.
Assets used in the provision of cable television services were not included in Rev. Proc. 62-21, 1962-2 C.B. 418; Rev. Proc. 71-25, 1971-2 C.B. 553; and Rev. Proc. 72-10, 1972-1 C.B. 721. This Revenue Procedure permits the use of the Class Life ADR System in the determination of depreciation and annual repair allowances for these assets for tax purposes, and provides asset guideline classes, asset guideline periods and ranges, and asset guideline repair allowance percentages for that purpose. The asset guideline periods and ranges established by this Revenue Procedure are based upon studies of the actual anticipated periods of use for the assets included in these classes. The asset guideline repair allowance percentages are based upon studies of repair costs for these assets.
Sec. 2. Asset Guideline Classes, Asset Guideline Periods and Ranges, and Annual Asset Repair Allowance Percentages for Cable Television.
The asset guideline classes, periods and ranges, and annual asset guideline repair allowance percentages have been established as set forth below.
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Annual
Asset Depreciation Asset
Asset Range (in years) Guide-
Guide- ---------------------- line
line Description of Assets Asset Repair
Class Included Lower Guide- Upper Allow-
limit line limit ance
Period Percent-
age
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48.4 Cable television:
Includes communications-
related assets used
to provide cable
television (community
antenna television)
services. Does not
include assets used to
provide subscribers
with two-way
communications services.
48.41 Headend _____________________ 9 11 13 5
Includes assets such as
towers, antennas,
preamplifiers,
converters, modulation
equipment, and program
non-duplication systems.
Does not include headend
buildings and program
origination assets.
48.42 Subscriber connection and
distribution systems _______ 8 10 12 5
Includes assets such as
trunk and feeder cable,
connecting hardware,
amplifiers, power
equipment, passive
devices, directional
taps, pedestals, pressure
taps, drop cables,
matching transformers,
multiple set connecter
equipment, and
converters.
48.43 Program origination _________ 7 9 11 9
Includes assets such as
cameras, film chains,
video tape recorders,
lighting, and remote
location equipment
excluding vehicles. Does
not include buildings
and their structural
components.
48.44 Service and test ____________ 7 8.5 10 2.5
Includes assets such as
oscilloscopes, field
strength meters, spectrum
analyzers, and cable
testing equipment, but
does not include
vehicles.
48.45 Microwave systems ___________ 7.5 9.5 11.5 2
Includes assets such as
towers, antennas,
transmitting and
receiving equipment and
broad band microwave
assets if used in the
provision of cable
television services. Does
not include assets used
in the provision of
common carrier services.
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Sec. 3. Effect on Other Documents.
Rev. Proc. 72-10 is modified by the addition of the newly established asset guideline classes, guideline periods and ranges, and annual guideline repair allowance percentages as set forth in Section 2.
Sec. 4. Effective Date.
The asset guideline periods and ranges and annual asset guideline repair allowance percentages for class 48.4, "Cable television," and subclasses 48.41 through 48.45 inclusive are effective for the property and the taxable years to which sections 1.167(a)-11 and 1.167(a)-12 of the regulations respectively apply. However, the taxpayer may at his option apply Rev. Proc. 72-10 without regard to this supplement for property placed in service in any such year beginning prior to January 1, 1973. Such option may be exercised for one such year and not for another or for all such years. The option shall be exercised in making the election to apply section 1.167(a)-11 or section 1.167(a)-12 for such year, and may not be revoked after the latest time for making such election and shall apply only with respect to the section for which exercised.
1 Also released as Technical Information Release 1251, September 4, 1973.
- 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.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
