Rev. Proc. 76-37
Rev. Proc. 76-37; 1976-2 C.B. 659
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund,
credit or abatement; determinations 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Superseded by Rev.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. 77-10
Section 1. Purpose.
The purpose of this Revenue Procedure is to prescribe under section 1.167(a)-11 of the Income Tax Regulations revised asset guideline classes for aircraft and air transportation assets and to prescribe asset guideline depreciation periods and ranges and annual asset guideline repair allowance percentages for these classes.
The revised guideline classes, asset guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages are set forth in section 2 of this Revenue Procedure.
Sec. 2. Asset Guideline Classes and Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages for Aircraft and for Assets Used In Air Transportation.
The asset guideline classes, asset guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages are prescribed as set forth below.
References in the "Description of Assets Included" for class 45.0 to Civil Aeronautics Board uniform accounts do not limit the applicability of the description to taxpayers regulated by the Civil Aeronautics Board. Rather, these references are included to provide a set of detailed definitions for all taxpayers who own depreciable assets used in air transportation.
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Asset Depreciation
Range (in years) Annual
------------------- Asset
Asset Asset Guideline
Guide- Guide- Repair
line Description of Assets Lower line Upper Allowance
Class Included Limit Period Limit Percentage
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00.21 Airplanes (airframes and
engines), except those
used in commercial or
contract carrying of
passengers or freight, and
all helicopters (airframes
and engines)_______________ 5 6 7 14.0
45.0 Air Transport:
Includes assets (except
helicopters) used in
commercial and contract
carrying of passengers and
freight by air. For
purposes of section
1.167(a)-11(d)(2)(iv)(a)
of the regulations,
expenditures for "repair,
maintenance, rehabilitation,
or improvement" shall
consist of direct
maintenance expenses
(irrespective or
airworthiness provisions or
charges) as defined by
Civil Aeronautics Board
uniform accounts 5200,
maintenance burden
(exclusive of expenses
pertaining to maintenance
buildings and improvements)
as defined by Civil
Aeronautics Board uniform
accounts 5300, and
expenditures which are not
"excluded additions" as
defined by section
1.167(a)-11(d)(2)(vi) of
the regulations and which
would be charged to
property and equipment
accounts in the Civil
Aeronautics Board uniform
system of accounts ________ 9.5 12 14.5 15.0
45.1 Air Transport (restricted)
Includes each asset
described in the
description of class 45.02
which was held by the
taxpayer on April 15, 1976,
or is acquired by the
taxpayer pursuant to a
contract which was, on
April 15, 1976, and at all
times thereafter, binding
on the taxpayer. This
criterion of classification
based on binding contract
concept is to be applied in
the same manner as under
the general rules expressed
in section 49(b)(1), (4),
(5), and (8) of the
Internal Revenue Code of
1954 ______________________ 5 6 7 15.0
Sec. 3. Effect On Other Documents.
Rev. Proc. 72-10 is modified by the represcription of asset guideline classes 00.21 "Airplanes" and 45.0 "Air Transport" and by the addition of class 45.1 "Air Transport (restricted)" with represcribed and additional guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages as set forth in Section 2 of this Revenue Procedure.
Sec. 4. Effective Date.
The asset guideline classes, asset guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages set forth in this Revenue Procedure are effective for property first placed in service after April 15, 1976. However, see the third sentence of section 1.167(a)-11(b)(4)(ii) of the regulations, which provides that neither the asset guideline period nor the lower limit of the asset depreciation range applicable to an asset placed in service during the taxable year may be longer than the respective period or limit in effect as of the first day of such taxable year.
1 Also released as IR-1690, dated November 4, 1976.
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund,
credit or abatement; determinations of correct tax liability.
(Also Part I, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
