Rev. Proc. 71-25
Rev. Proc. 71-25; 1971-2 C.B. 553
DOCUMENT ATTRIBUTES
- Cross-Reference
26 CFR 601.402: Sales taxes collected by return.
(Also Part I, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Citations: Rev. Proc. 71-25; 1971-2 C.B. 553
Superseded by Rev. Proc. 72-10
Section 1. Purpose.
The purpose of this Revenue Procedure is to set forth the asset guideline classes, asset guideline periods and asset depreciation ranges referred to in sections 1.167(a)-11(b)(4) of the Income Tax Regulations for the Asset Depreciation Range System which taxpayers may elect for certain assets first placed in service by the taxpayer after December 31, 1970. In addition, this Revenue Procedure sets forth the asset guideline class repair allowance percentages referred to in section 1.167(a)-11(d)(2) of the regulations which may be used by electing taxpayers in determining the treatment under sections 162, 212, and 263 of expenditures paid or incurred in connection with the repair, maintenance, rehabilitation or improvement of certain property described in section 1.167(a)-11(d)(2)(iii) of the regulations. Without regard to whether the description of assets in an asset guideline class includes other property, the taxpayer may elect, in accordance with the regulations, to apply the asset guideline periods and asset depreciation ranges only to "eligible property" as defined in section 1.167(a)-11(b)(2) of the regulations, and to apply the asset guideline class repair allowance percentages only to "repair allowance property" as defined in section 1.167(a)-11(d)(2)(iii) of the Income Tax Regulations.
Sec. 2. Asset Guideline Classes and Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages.
The asset guideline classes, asset guideline periods, asset depreciation ranges, and asset guideline repair allowance percentages have been established as set forth below.
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Annual
Asset depreciation range asset
Asset (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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00.0 DEPRECIABLE ASSETS USED IN
ALL BUSINESS ACTIVITIES,
EXCEPT AS NOTED:
00.1 Office furniture,
fixtures, machines, and
equipment: Includes
furniture and fixtures
which are not a
structural component of
the building, and
machines and equipment
used in the preparation
of papers or data.
Includes such assets as
desks, files, safes,
typewriters, accounting,
calculating and data
processing machines,
communications,
duplicating and copying
equipment................ 8 10 12 7.5
00.2 Transportation equipment:
00.21 Aircraft (airframes
and engines) except
aircraft of air
transport companies. 5 6 7 14.0
00.22 Automobiles, taxis... 2.5 3 3.5 16.5
00.23 Buses................ 7 9 11.0 11.5
00.24 General purpose
trucks, including
concrete ready-mix
trucks and ore
trucks for use
over-the-road:
00.241 Light (actual
unloaded
weight less
than 13,000
pounds)........ 3 4 5 16.5
00.242 Heavy (actual
unloaded
weight 13,000
pounds or
more).......... 5 6 7 10.0
00.25 Railroad cars and
locomotives, except
those owned by
railroad
transportation
companies........... 12 15 18 8.0
00.26 Tractor units used
over-the-road....... 3 4 5 16.5
00.27 Trailers and
trailer-mounted
containers.......... 5 6 7 10.0
00.28 Vessels, barges,
tugs and similar
water transportation
equipment, except
those used in
marine contract
construction........ 14.5 18 21.5 6.0
01.0 DEPRECIABLE ASSETS USED IN
to THE FOLLOWING ACTIVITIES
79.0
01.0 Agriculture: Includes only
such assets as are
identified below and that
are used in the production
of crops or plants, vines
and trees (including
forestry); the keeping,
grazing, or feeding of
livestock for animal
products (including
serums), for animals
increase, or value
increase; the operation of
dry lot or farm dairies,
nurseries, greenhouses,
sod farms, mushroom
cellars, cranberry bogs,
apiaries, and fur farms;
the production of bulb,
flower, and vegetable seed
crops; and the performance
of agricultural, animal
husbandry and horticultural
services.
01.1 Machinery and equipment,
including grain bins and
fences but no other land
improvements............. 8 10 12 11.0
01.2 Animals:
01.21 Cattle, breeding or
dairy............... 5.5 7 8.5 .........
01.22 Horses, breeding or
work................ 8 10 12 .........
01.23 Hogs, breeding....... 2.5 3 3.5 .........
01.24 Sheep and goats,
breeding............ 4 5 6 .........
01.3 Farm buildings /1/........ 20 25 30.0 5.0
10.0 Mining: Includes assets
used in the mining and
quarrying of metallic and
nonmetallic minerals
(including sand, gravel,
stone, and clay) and the
milling beneficiation and
other primary preparation
of such materials.......... 8 10 12 6.5
13.0 Petroleum and natural gas
production and related
activities:
13.1 Drilling of oil and gas
wells: Includes assets
used in the drilling of
oil and gas wells on a
contract, fee or other
basis and the provision
of geophysical and other
exploration services;
and the provision of
such oil and gas field
services as chemical
treatment, plugging and
abandoning of wells and
cementing or perforating
well casings; but not
including assets used in
the performance of any
of these activities and
services by integrated
petroleum and natural
gas producers for their
own account.............. 5 6 7 10.0
13.2 Exploration for petroleum
and natural gas
deposits: Includes
assets used for drilling
of wells and production
of petroleum and natural
gas, including gathering
pipelines and related
storage facilities, 1
when these are related
activities undertaken by
petroleum and natural
gas producers............ 11 14 17 4.5
13.3 Petroleum refining:
Includes assets used for
the distillation,
fractionation, and
catalytic cracking of
crude petroleum into
gasoline and its other
components............... 13 16 19 7.0
13.4 Marketing of petroleum
and petroleum products:
Includes assets used in
marketing, such as
related storage
facilities and complete
service stations, 1 but
not including any of
these facilities related
to petroleum and natural
gas trunk pipelines...... 13 16 19 4.0
15.0 Contract Construction:
Includes such assets used
by general building,
special trade, heavy
construction and marine
contractors; does not
include assets used by
companies in performing
construction services on
their own account.
15.1 Contract construction
other than marine........ 4 5 6 12.5
15.2 Marine contract
construction............. 9.5 12 14.5 5.0
20.0 Manufacture of foods and
beverages for human
consumption, and certain
related products, such as
manufactured ice, chewing
gum, vegetable and animal
fats and oils, and
prepared feeds for animals
and fowls:
20.1 Grain and grain mill
products: Includes
assets used in the
production of flours,
cereals, livestock
feeds, and other
grain and grain mill
products................. 13.5 17 20.5 6.0
20.2 Sugar and sugar products:
Includes assets used in
the production of raw
sugar, syrup or finished
sugar from sugar cane or
sugar beets.............. 14.5 18 21.5 4.5
20.3 Vegetable oils and
vegetable oil products:
Includes assets used in
the production of oil
from vegetable materials
and the manufacture of
related vegetable oil
products................. 14.5 18 21.5 3.5
20.4 All other food and
kindred products:
Includes assets used in
the production of foods,
beverages and related
production not included
in classes 20.1, 20.2,
and 20.3................. 9.5 12 14.5 5.5
21.0 Manufacture of tobacco and
tobacco products: Includes
assets used in the
production of cigarettes,
cigars, smoking and
chewing tobacco, snuff
and other tobacco products. 12 15 18 5.0
22.0 Manufacture of textile mill
products:
22.1 Knitwear and knit
products: Includes
assets used in the
production of knit
apparel and other
finished articles from
yarn..................... 7 9 11 7.0
22.2 Textile mill products,
except knitwear:
includes assets used
in the production of
spun, woven or processed
yarns and fabrics; of
mattresses, carpets,
rugs, pads, and sheets,
and of other products
of natural or synthetic
fibers................... 11 14 17 4.5
22.3 Finishing and dyeing:
Includes assets used in
the finishing and dyeing
of natural and synethic
fibers, yarns, and
fabric and knit apparel.. 9.5 12 14.5 5.5
23.0 Manufacture of apparel and
other finished products:
Includes assets used in
the production of clothing
and fabricated textile
products by the cutting
and sewing of woven
fabrics, other textile
products and furs; but
does not include assets
used in the manufacture
of apparel from rubber
and leather................ 7 9 11 7.0
24.0 Manufacture of lumber and
wood products:
24.1 Cutting of timber:
Includes logging
machinery and equipment
and road building
equipment used by
logging and sawmill
operators and pulp
manufacturers on their
own account.............. 5 6 7 10.0
24.2 Sawing of dimensional
stock from logs:
Includes machinery and
equipment installed in
permanent or well-
established sawmills..... 8 10 12 6.5
24.3 Sawing of dimensional
stock from logs:
Includes machinery and
equipment installed in
sawmills characterized
by temporary foundations
and a lack, or minimum
amount, of lumber-
handling, drying, and
residue-disposal
equipment and facilities. 5 6 7 10.0
24.4 Manufacture of lumber,
wood products and
furniture: Includes
assets used in the
production of plywood,
hardboard, flooring,
veneers, furniture and
other wood products,
including the treatment
of poles and timber...... 8 10 12 6.5
26.0 Manufacture of paper and
allied products:
26.1 Manufacture of pulps from
wood and other cellulose
fibers and rags:
Includes assets used in
the manufacture of paper
and paperboard, but does
not include the assets
used in pulpwood logging
nor the manufacture of
hardboard................ 13 16 19 4.5
26.2 Manufacture of paper and
paperboard: Includes
assets used in the
production of converted
products such as paper
coated off the paper
machine, paper bags,
paper boxes, and
envelopes................ 9.5 12 14.5 5.5
27.0 Printing, publishing and
allied industries:
includes assets used in
printing by one or more
of the common processes,
such as letterpress,
lithography, gravure, or
screen; the performance of
services for the printing
trade, such as
bookbinding, typesetting,
engraving, photoengraving,
and electrotyping; and the
publication of newspapers,
books, and periodicals,
whether or not carried out
in conjunction with
printing................... 9 11 13 5.5
28.0 Manufacture of chemicals
and allied products:
Includes assets used in
the manufacture of basic
chemicals such as acids,
alkalies, salts, and
organic and inorganic
chemicals; chemical
products to be used in
further manufacture, such
as synthetic fibers and
plastics materials,
including petro-chemical
processing beyond that
which is ordinarily a
part of petroleum
refining; and finished
chemical products, such as
pharmaceuticals,
cosmetics, soaps,
fertilizers, paints and
varnishes, explosives, and
compressed and liquified
gases. Does not include
assets used in the
manufacture of finished
rubber and plastic
products or in the
production of natural gas
products, butane, propane,
and by-products of natural
gas production plants...... 9 11 13 5.5
30.0 Manufacture of rubber and
plastics products:
30.1 Manufacture of rubber
products: Includes
assets used for the
production of products
from natural, synthetic,
or reclaimed rubber,
gutta percha, balata,
or gutta siak, such as
tires, tubes, rubber
footwear, mechanical
rubber goods, heels and
soles, flooring, and
rubber sundries; and in
the recapping,
retreading, and
rebuilding of tires...... 11 14 17 5.0
30.2 Manufacture of
miscellaneous finished
plastics products:
Includes assets used in
the manufacture of
plastics products and
the molding of primary
plastics for the trade.
Does not include assets
used in the manufacture
of basic plastics
materials nor the
manufacture of
phonograph records....... 9 11 13 5.5
31.0 Manufacture of leather:
Includes assets used in
the tanning, currying, and
finishing of hides and
skins; the processing of
fur pelts; and the
manufacture of finished
leather products, such as
footwear, belting,
apparel, luggage and
similar leather goods...... 9 11 13 5.5
32.0 Manufacture of stone, clay,
glass, and concrete
products:
32.1 Manufacture of glass
products: Includes
assets used in the
production of flat,
blown, or pressed
products of glass,
such as plate safety
and window glass,
glass containers,
glassware and
fiberglass. Does not
include assets used
in the manufacture of
lenses................... 11 14 17 6.0
32.2 Manufacture of cement:
Includes assets used in
the production of
cement, but does not
include any assets used
in the manufacture of
concrete and concrete
products nor in any
mining or extraction
process.................. 16 20 24 3.0
32.3 Manufacture of other
stone and clay
products: Includes
assets used in the
manufacture of products
from materials in the
form of clay and stone,
such as brick, tile and
pipe; pottery and
related products, such
as vitreous-china,
plumbing fixtures,
earthenware and ceramic
insulating materials;
and also includes assets
used in manufacture of
concrete and concrete
products. Does not
include ssets used in
any mining or extraction
processes................ 12 15 18 4.5
33.0 Manufacture of primary
metals: Includes assets
used in the smelting and
refining of ferrous and
nonferrous metals from
ore, pig, or scrap, the
rolling, drawing, and
alloying of ferrous and
nonferrous metals; the
manufacture of castings,
forgings, and other basic
products of ferrous and
nonferrous metals; and the
manufacture of nails,
spikes, structural shapes,
tubing, and wire and
cable:
33.1 Ferrous metals............ 14.5 18 21.5 8.0
33.2 Nonferrous metals......... 11 14 17 4.5
34.0 Manufacture of fabricated
metal products: Includes
assets used in the
production of metal cans,
tinware, nonelectric
heating apparatus,
fabricated structural
metal products, metal
stampings and other
ferrous and nonferrous
metal and wire products
not elsewhere classified... 9.5 12 14.5 6.0
35.0 Manufacture of machinery,
except electrical and
transportation equipment:
35.1 Manufacture of
metalworking machinery:
Includes assets used
in the production of
metal cutting and
forming machines,
special dies, tools,
jigs, and fixtures,
and machine tool
accessories.............. 9.5 12 14.5 5.5
35.2 Manufacture of other
machines: Includes
assets used in the
production of such
machinery as engines
and turbines; farm
machinery, construction,
and mining machinery;
general and special
industrial machines
including office
machines and
nonelectronic computing
equipment; miscellaneous
machines except
electrical equipment and
transportation equipment. 9.5 12 14.5 5.5
36.0 Manufacture of electrical
machinery, equipment, and
supplies: Includes assets
used in the production of
machinery, apparatus, and
supplies for the
generation, storage,
transmission,
transformation, and
utilization of electrical
energy:
36.1 Manufacture of electrical
equipment: Includes
assets used in the
production of such
machinery as electric
test and distributing
equipment, electrical
industrial apparatus,
household appliances,
electric lighting and
wiring equipment;
electronic components
and accessories,
phonograph records,
storage batteries and
ignition systems......... 9.5 12 14.5 5.5
36.2 Manufacture of electronic
products: Includes
assets used in the
production of electronic
detection, guidance,
control, radiation,
computation, test and
navigation equipment and
the components thereof.
Does not include the
assets of manufacturers
engaged only in the
purchase and assembly of
components............... 6.5 8 9.5 7.5
37.0 Manufacture of
transportation equipment:
Includes assets used in
the production of such
machinery as vehicles and
equipment for the
transportation of
passengers and cargo:
37.1 Manufacture of motor
vehicles and parts:
Includes assets used in
the production of
automobiles, trucks,
trailers, buses and
their component parts.... 9.5 12 14.5 5.5
37.2 Manufacture of aerospace
products: Includes
assets used in the
production of aircraft,
spacecraft, rockets,
missiles and their
component parts.......... 6.5 8 9.5 7.5
37.3 Ship and boat building:
Includes assets used in
the manufacture and
repair of ships and
boats, but excludes dry
docks.................... 9.5 12 14.5 8.0
37.4 Manufacture of railroad
transportation
equipment: Includes
assets used in the
building and rebuilding
of railroad locomotives,
railroad cars, and
street railway cars...... 9.5 12 14.5 5.5
38.0 Manufacture of
professional, scientific,
and controlling
instruments; photographic
and optical goods; watches
and clocks: Includes
assets used in the
manufacture of mechanical
measuring, engineering,
laboratory and scientific
research instruments;
optical instruments and
lenses; surgical, medical
and dental instruments,
equipment and supplies;
ophthalmic goods,
photographic equipment
and supplies; and watches
and clocks................. 9.5 12 14.5 5.5
39.0 Manufacture of products not
elsewhere classified:
Includes assets used in
the production of jewelry;
musical instruments; toys
and sporting goods; pens,
pencils, office and art
supplies. Also includes
assets used in production
of motion picture and
television films and
tapes; as waste reduction
plants; and in the ginning
of cotton.................. 9.5 12 14.5 5.5
40.0 Railroad transportation:
Includes the assets
identified below and
which are used in the
commercial and contract
carrying of passengers and
freight by rail. Excludes
any nondepreciable assets
included in Interstate
Commerce Commission
accounts enumerated for
this class:
40.1 Railroad machinery and
equipment................ 11 14 17 10.5
Includes assets
classified in the
following Interstate
Commerce Commission
accounts: 1
Road accounts:
(16) Station and
office buildings
(freight handling
machinery and
equipment only)
(26) Communication
systems
(27) Signals and
interlockers
(37) Roadway
machines
(44) Shop
machinery
Equipment accounts:
(52) Locomotives
(53) Freight train
cars
(54) Passenger
train cars
(55) Highway
revenue equipment
(57) Work
equipment
40.2 Railroad structures and
similar improvements..... 24 30 36 5.0
Includes assets
classified in the
following Interstate
Commerce Commission
road accounts: 1
(6) Bridges,
trestles, and
culverts
(7) Elevated
structure
(13) Fences,
snowsheds, and
signs
(16) Station and
office buildings
(stations and
other operating
structures only)
(17) Roadway
buildings
(18) Water
stations
(19) Fuel stations
(20) Shops and
enginehouses
(31) Power
transmission
systems
(35) Miscellaneous
structures
(39) Public
improvements
construction
40.3 Railroad wharves and
docks /1/................ 16 20 24 5.5
(23) Wharves and
docks
(24) Coal and ore
wharves
40.5 Railroad powerplant and
equipment:
Electric generating
equipment:
40.51 Hydraulic............ 40 50 60 1.5
40.52 Nuclear.............. 16 20 24 3.0
40.53 Steam.................. 22.5 28 33.5 2.5
40.54 Steam, compressed air,
and other powerplant
equipment............. 22.5 28 33.5 7.5
41.0 Motor transport--
passengers: Includes
assets used in the urban
and interurban commercial
and contract carrying of
passengers by road, except
the transportation assets
included in class 00.2
above...................... 6.5 8 9.5 11.5
42.0 Motor transport--freight:
Includes assets used in
the commercial and
contract carrying of
freight by road, except
the transportation assets
included in class 00.2
above...................... 6.5 8 9.5 11.0
44.0 Water transportation:
Includes assets used in
the commercial and
contract carrying of
freight and passengers
by water except the
transportation assets
included in class 00.2
above...................... 16 20 24 8.0
45.0 Air transport: Includes
assets used in the
commercial and contract
carrying of passengers and
freight by air............. 5 6 7 14.0
46.0 Pipeline transportation:
Includes assets used in
the private, commercial,
and contract carrying of
petroleum, gas, and other
products by means of pipes
and conveyors. The
trunklines and related
storage facilities of
integrated petroleum and
natural gas producers are
included in this class 1 17.5 22 26.5 3.0
48.0 Communication: Includes
assets used in the
furnishing of point-to-
point communication
services by wire or radio,
whether intended to be
received aurally or
visually; and radio
broadcasting and
television.
48.1 Telephone: Includes the
assets identified below
and which are used in
the provision of
commercial and contract
telephonic services:
48.11 Central office buildings:
Special purpose
structures intended to
house central office
equipment and which are
classified in Federal
Communications
Commissions Account No.
212 /1/.................. 36 45 54 1.5
48.12 Central office
equipment: Includes
central office
switching and
related equipment
classified in
Federal
Communications
Commission Account
No. 221............... 16 20 24 6.0
48.13 Station equipment:
Includes such
station apparatus
and connections as
teletypewriters,
telephones, booths,
and private
exchanges as are
classified in
Federal
Communications
Commission Account
Nos. 231, 232, and
234................... 8 10 12 10.0
48.14 Distribution plant:
Includes such
assets as pole
lines, cable,
aerial wire and
underground
conduits as are
classified in
Federal
Communications
Commission Account
Nos. 241, 242.1,
242.2, 242.3,
242.4, 243, and
244................... 28 35 42 2.0
48.2 Radio and television
broadcasting............. 5 6 7 10.0
49.0 Electric, gas, and sanitary
services:
49.1 Electric utilities:
Includes assets used in
the production,
transmission and
distribution of
electricity for sale,
including related land
improvements, 1 and
identified as:
49.11 Hydraulic production
plant: Includes
dams, flumes,
canals and
waterways. Also
includes jet
engines and other
internal combustion
engines used to
operate auxiliary
facilities for load
shaving purposes or
in case of
emergencies........... 40 50 60 1.5
49.12 Nuclear production
plant: Includes jet
engines and other
internal combustion
engines used to
operate auxiliary
facilities for load
purposes or
in case of
emergencies........... 16 20 24 3.0
49.13 Steam production
plant: Includes jet
engines and other
internal combustion
engines used to
operate auxiliary
facilities for load
shaving purposes or
in case of
emergencies........... 22.5 28 33.5 2.5
49.14 Transmission and
distribution
facilities............ 24 30 36 2.0
49.2 Gas utilities: Includes
assets used in the
production,
transmission, and
distribution of natural
and manufactured gas for
sale, including related
land improvements 1 and
identified as:
49.21 Distribution
facilities:
Including gas water
heaters and gas
conversion
equipment installed
by utility on
customers' premises
on a rental basis..... 28 35 42 2.0
49.22 Manufactured gas
production plant...... 24 30 36 2.0
49.23 Natural gas
production plant...... 11 14 17 4.5
49.24 Trunk pipelines
and related storage
facilities............ 17.5 22 26.5 3.0
49.3 Water utilities: Includes
assets used in the
gathering, treatment,
and commercial
distribution of water.... 40 50 60 1.5
49.4 Central steam production
and distribution:
Includes assets used in
the production and
distribution of steam
for sale................. 22.5 28 33.5 2.5
50.0 Wholesale and retail trade:
Includes assets used in
carrying out the
activities of purchasing,
assembling, storing,
sorting, grading, and
selling of goods at both
the wholesale and retail
level. Also includes
assets used in such
activities as the
operation of restaurants,
cafes, coin-operated
dispensing machines,
and in brokerage of of
scrap metal................ 8 10 12 6.5
70.0 Services: Includes assets
used in the provision of
personal services such as
those offered by hotels
and motels, laundry and
dry cleaning
establishments, beauty
and barber shops,
photographic studios and
mortuaries. Includes
assets used in the
provision of professional
services such as those
offered by doctors,
dentists, lawyers,
accountants, architects,
engineers, and
veterinarians. Includes
assets used in the
provision of repair and
maintenance services.
Includes equipment or
facilities used by
cemetery organizations,
news agencies, teletype
wire services, plumbing
contractors, frozen food
lockers, research
laboratories, hotels, and
motels (except office
furniture and fixtures).... 8 10 12 6.5
79.0 Recreation and amusement:
Includes assets used in
the provision of amusement
or entertainment services
on payment of a fee or
admission charge, as in
the operation of bowling
alleys, billiard and pool
establishments, theaters,
concert halls, amusement
parks, and miniature golf
courses. Does not include
such assets which consist
primarily of specialized
land improvements or
structures, such as golf
courses, sports stadia,
racetracks, ski slopes, or
buildings which house
bowling alleys............. 8 10 12 6.5
/*/ Also released as Technical Information Release 1088, dated June 22, 1971.
1 Includes only property which is "eligible property" as defined in section 1.167(a)-11(b)(2) of the Income Tax Regulations, such as certain special-purpose structures and certain research and storage facilities (but not a building and its structural components).
Sec. 3. Effect on Other Documents.
The provisions of Revenue Procedure 62-21, C.B. 1962-2, 418, do not apply to assets with respect to which the annual allowance for depreciation is, in accordance with the taxpayer's election, determined under the provisions of section 1.167(a)-11 of the regulations.
DOCUMENT ATTRIBUTES
- Cross-Reference
26 CFR 601.402: Sales taxes collected by return.
(Also Part I, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
