Rev. Proc. 77-3
Rev. Proc. 77-3; 1977-1 C.B. 535
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund, credit
or abatement; determination of correct tax liability.
(Also Part 1, 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Superseded by Rev.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 certain asset guideline classes to include certain items of section 1250 property.
Rev. Proc. 72-10, 1972-1 C.B. 721, as subsequently modified and supplemented, contained some classes that included certain types of section 1250 property. Section 5 of Pub. L. No. 93-625, 1975-1 C.B. 510, 512, made all section 1250 property ineligible for treatment under section 167(m) of the Internal Revenue Code of 1954 (and thus deleted such property from the application of Rev. Proc. 72-10) until such time as classes in which such property falls are first prescribed. This Revenue Procedure constitutes such first prescription for certain types of section 1250 property including a represcription of class 00.3 Land Improvements.
Sec. 2. Asset Guideline Classes and Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages for Asset Guideline Classes That Include Certain Types of Section 1250 Property.
All classes of Rev. Proc. 72-10, as modified and supplemented, that included items of section 1250 property placed in service prior to January 1, 1974, the effective date of section 5 of Pub. L. No. 93-625, are hereby represcribed to include all items of section 1250 property that were included prior to January 1, 1974, with the same asset guideline classes and periods, depreciation ranges, and annual asset guideline repair allowance percentages as previously prescribed except for classes 65.1 through 65.45 under the title 65.0 Building Services and class 00.3 Land Improvements. Class 65.0 Building Services is not represcribed. Class 00.3 Land Improvements is prescribed as set forth below.
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Asset Depreciation
Range (in years) Annual
-------------------- Asset
Asset Asset Guideline
Guide- Guide- Repair
line Description of Lower line Upper Allowance
Class Assets Included Limit Period Limit Percentage
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00.3 Land Improvements
Includes improvements
directly to or added
to land, whether such
improvements are section
1245 property or section
1250 property, provided
such improvements are
depreciable. Examples
of such assets might
include sidewalks,
roads, canals, water-
ways, drainage facili-
ties, sewers, wharves
and docks, bridges,
fences, landscaping,
shrubbery, or radio and
television transmitting
towers. Does not
include land improve-
ments that are expli-
citly included in any
other class, and
buildings and struc-
tural components as
defined in section
1.48-1(e) of the
regulations. Excludes
public utility ini-
tial clearing and
grading land improve-
ments as specified in
Rev. Rul. 72-403,
1972-C.B. 102 __________ 20
Sec. 3. Effect on Other Documents.
Rev. Proc. 72-10, as modified and supplemented, is modified by the represcription of revised asset guideline class 00.3 Land Improvements and the represcription of other asset guideline classes that include certain types of section 1250 property with represcribed asset 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 percentages for the activity classes set forth in this Revenue Procedure are effective for property first placed in service after December 31, 1975. However, taxpayers may, at their option, apply this Revenue Procedure for property placed in service after December 31, 1973, and before January 1, 1976, with respect to asset guidline class 00.3 and any asset guideline class containing section 1250 property except those asset guideline classes formerly described under title 65.0 Building Services.
1 Also released as IR-1723, dated December 27, 1976.
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund, credit
or abatement; determination of correct tax liability.
(Also Part 1, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
