Rev. Proc. 73-30
Rev. Proc. 73-30; 1973-2 C.B. 484
- 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Superseded by Rev.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 revised and supplementary asset guideline classes, asset guideline periods, asset depreciation ranges, and repair allowance percentages for assets used in ship and boat building.
Class 37.3 "Ship and boat building" as published in Rev. Proc. 72-10, 1972-1 C.B. 721, is modified and supplemented to include subclass 37.31 and subclass 37.32. As modified, class 37.31 includes the assets previously included in asset guideline class 37.3. The definition of assets included is amplified and the asset guideline repair allowance precentage is revised from 8 to 8.5 percent. The asset guideline period and the asset depreciation range of asset guideline class 37.31 are the same as those of asset guideline class 37.3.
Previously, asset guideline class 37.3 excluded dry docks and land improvements. Asset guideline class 37.32 is established by this Revenue Procedure to include these assets. The asset guideline period for asset guideline class 37.32 is 16 years. The asset guideline depreciation range is 13 to 19 years. The annual repair allowance percentage is 2.5 percent.
The option is provided to permit use of this Revenue Procedure or Rev. Proc. 72-10 without regard to this supplement for taxable years beginning before January 1, 1973 for property to which either section 1.167(a)-11 or 1.167(a)-12 of the regulations applies.
Buildings and their structural components were not included in asset guideline class 37.3 nor are they included in either asset guideline class 37.31 or 37.32.
Sec. 2. Asset Guideline Classes and Periods, Asset Guideline
Depreciation Ranges and Annual Repair Allowance Percentages for Ship and Boat Building.
The asset guideline classes, asset guideline periods, asset guideline depreciation ranges and annual repair allowance percentages are 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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37.3 Ship and boat building:
37.31 Ship and boat building
machinery and equip-
ment:
Includes assets used
in the manufacture
and repair of ships,
boats, caissons,
drilling rigs and
special fabrica-
tions not included
in asset guideline
class 37.32. Speci-
fically includes all
manufacturing and
repairing machinery
and equipment, in-
cluding machinery
and equipment used
in the operation of
assets included in
asset guideline
37.32. Excludes
buildings and their
structural components _ 9.5 12 14.5 8.5
37.32 Ship and boat building dry
docks and land improve-
ments:
Includes assets used in
the manufacture and
repair of ships,
boats, caissons,
drilling rigs and
special fabrications
not included in asset
guideline class 37.31.
Specifically includes
floating and fixed dry
docks, ship basins,
graving docks, ship-
ways, piers and all
other land improve-
ments such as water,
sewer, and electric
systems. Excludes
buildings and their
structural components _ 13 16 19 2.5
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Sec. 3. Effect on Other Documents.
Rev. Proc. 72-10, asset guideline class 37.3 is modified by including thereunder two subclasses, namely: class 37.31 "Ship and boat building machinery and equipment"; and class 37.32 "Ship and boat building dry docks and land improvements."
Sec. 4. Effective Date.
The asset guideline classes, asset guideline periods, asset guideline ranges and annual repair allowance percentages of this Revenue Procedure are effective for the property and the taxable years to which either section 1.167(a)-11 or 1.167(a)-12 of the regulations applies. However, the taxpayer may at his option apply Rev. Proc. 72-10 without regard to this supplement for any one or more such taxable years beginning prior to January 1, 1973. The option applies separately to section 1.167(a)-11 and 1.167(a)-12 and shall be exercised separately for each section by making an election to apply that section and may not be revoked after the latest time for making such election.
1 Also released as Technical Information Release 1256, dated September 14, 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
