Rev. Proc. 72-10
Rev. Proc. 72-10; 1972-1 C.B. 721
- Cross-Reference
(Also Part I, Section 167.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Superseded by Rev. Proc. 77-10 Modified by Rev. Proc. 77-8 Modified by Rev. Proc. 77-3 Modified by Rev. Proc. 77-2 Modified by Rev. Proc. 76-37 Modified by Rev. Proc. 76-27 Modified by Rev. Proc. 76-18 Modified by Rev. Proc. 76-17 Modified by Rev. Proc. 74-50 Modified by Rev. Proc. 74-37 Modified by Rev. Proc. 74-32 Modified by Rev. Proc. 74-31 Modified by Rev. Proc. 74-30 Modified by Rev. Proc. 74-29 Modified by Rev. Proc. 74-28 Modified by Rev. Proc. 74-27 Modified by Rev. Proc. 73-30 Modified by Rev. Proc. 73-28 Modified by Rev. Proc. 73-27 Clarified and Modified by Rev. Proc. 73-26 Modified by Rev. Proc. 73-25 Modified by Rev. Proc. 73-24 Clarified and Modified by Rev. Proc. 73-23 Supplemented by Rev. Proc. 73-3 Supplemented and Modified by Rev. Proc. 73-2
Section 1. Purpose.
The purpose of this Revenue Procedure is to restate under the rules authorized by section 167(m) of the Code, the asset guideline classes, asset depreciation periods and asset depreciation ranges referred to in section 1.167(a)-11(b)(4) of the Income Tax Regulations for the Class Life Asset Depreciation Range System (ADR) that taxpayers may elect for certain assets first placed in service by the taxpayer after December 31, 1970. In addition, this Revenue Procedure restates under the rules authorized by section 263(f) of the Code the asset guideline class repair allowance percentages referred to in section 1.167(a)-11(d)(2) of the regulations that may be used by electing taxpayers in determining, under sections 162, 212, and 263 of the Internal Revenue Code of 1954, the treatment 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. Taxpayers may elect, in accordance with the provisions of section 1.167(a)-11 of the regulations to apply the established asset depreciation periods and asset depreciation ranges to "eligible property" as defined in section 1.167(a)-11(b)(2) of the regulations, and to apply the established asset guideline class repair allowance percentages to "repair allowance property" as defined in section 1.167(a)-11(d)(2)(iii) of the regulations. Taxpayers may also elect to apply the asset guideline periods in accordance with section 1.167(a)-12 of the regulations to certain property placed in service before January 1, 1971.
Sec. 2. Rules of Application.
2.01 In the case of a building or other structure which is section 1250 property (as defined in section 1250(c) of the Code), in accordance with section 1.167(a)-11(d)(2)(iii) of the regulations each item of such property shall for purposes of applying the asset guideline repair allowance be treated as in a separate asset guideline class. Thus, for example, if the taxpayer has two buildings which would, but for the preceding sentence, be in the same asset guideline class, the repair allowance for each building will be determined by applying section 1.167(a)-11(d)(2)(iii) separately to the unadjusted basis of each building.
2.02 Property which is used predominantly outside the United States may be eligible property if the requirements of section 1.167(a)-11(b)(2) of the regulations are met. In the case of property first placed in service and used predominantly outside the United States during the taxable year of election, an asset guideline period, but no asset depreciation range is in effect. Accordingly, such property shall not be treated as included in the same asset guideline class as property used predominantly inside the United States, for purposes of determining the asset depreciation period under section 1.167(a)-11(b)(4) of the regulations. Thus, for this purpose each asset guideline class described in this Revenue Procedure has an exact counterpart which consists of property otherwise includable within the class, but used predominantly outside the United States during the taxable year of election. Generally, for this purpose property is used predominantly outside the United States if such property is physically located outside the United States during more than 50 percent of days of the taxable year of election, beginning with the date the property is first placed in service. However, there are ten exceptions to this general rule and these are contained in section 48(a)(2) of the Internal Revenue Code of 1954. The asset depreciation period for property, which is determined in the taxable year of election, will not be changed because of a change in predominant use after the close of such taxable year. Although treated as in a separate class for purposes of determining the asset depreciation period, property predominantly used outside the United States shall be included in the same asset guideline class as property predominantly used inside the United States for purposes of applying the asset guideline class repair allowance under section 1.167(a)-11(d)(2) of the regulations.
Sec. 3. 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.
--------------------------------------------------------------------
Annual
Asset depreciation range asset
Asset (in years) guide-
guide- ------------------------ line
line Description of Asset repair
class assets included Lower guide- Upper allow-
limit line limit ance
period per-
centage
--------------------------------------------------------------------
00.0 DEPRECIABLE ASSETS USED
IN ALL BUSINESS ACTI-
VITIES, EXCEPT AS
NOTED:
00.1 Office Furniture, Fix-
tures, Machines, and
Equipment:
Includes furniture
and fixtures which
are not a structu-
ral component of
the building, and
machines and
equipment used in
the preparation of
papers or data.
Includes such as-
sets as desks,
files, safes,
typewriters, ac-
counting, calcu-
lating and data
processing ma-
chines, communi-
cations, dupli-
cating and cop-
ying equipment....... 8 10 12 7.5
00.2 Transportation Equip-
ment:
00.21 Aircraft (airframes
and engines) except
aircraft of air
transportation com-
panies............... 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 un-
loaded weight
less than 13,000
pounds)............ 3 4 5 16.5
00.242 Heavy (actual un-
loaded weight
13,000 pounds or
more).............. 5 6 7 10.0
00.25 Railroad cars and
locomotives, except
those owned by
railroad transpor-
tation 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 transporta-
tion equipment,
except those used
in marine contract
construction......... 14.5 18 21.5 6.0
00.3 Land Improvements:/1/
Improvements directly
to or added to land
that are more often
than not directly
related to one or
another of the spe-
cific classes of
economic activity
specified below.
Includes only those
depreciable land im-
provements which
have a limited pe-
riod of use in the
trade or business,
the length of which
can be reasonably
estimated for the
particular improve-
ment. That is, ge-
neral grading of
land such as in the
case of cemeteries,
golf courses and ge-
neral site grading
and leveling costs
not directly related
to buildings or
other structural
improvements to be
added, are not de-
preciable or inclu-
ded in this class
but such costs are
added to the cost
basis of the land.
Includes paved sur-
faces such as side-
walks and roads,
canals, waterways,
drainage facilities
and sewers; wharves
and docks; bridges;
all fences except
those included in
specific classes
described below
(i.e., farm and
railroad fences);
landscaping, shrub-
bery and similar
improvements; radio
and television
transmitting towers,
and other inherently
permanent physical
structures added to
land except buil-
dings and their
structural compo-
nents.
Excludes land improve-
ments of electric,
gas, steam and water
utilities; telephone
and telegraph compa-
nies; and pipeline,
water and rail car-
riers which are as-
sets covered by
asset guideline
classes specific to
their respective
classes of economic
activity............. 20
01.0 DEPRECIABLE ASSETS USED
to IN THE FOLLOWING ACTI-
79.0 VITIES:/2/
01.0 Agriculture:
Includes only such
assets as are identi-
fied below and that
are used in the pro-
duction of crops or
plants, vines and
trees (including fo-
restry); the keeping,
grazing, or feeding
of livestock for ani-
mal products (inclu-
ding serums), for a-
nimals increase, or
value increase; the
operation of dry lot
or farm dairies, nur-
series, greenhouses,
sod farms, mushroom
cellars, cranberry
bogs, apiaries, and
fur farms; the pro-
duction of bulb,
flower, and vegetable
seed crops; and the
performance of agri-
cultural, animal hus-
bandry and horticul-
tural 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....... 20 25 30.0 5.0
10.0 Mining:
Includes assets used
in the mining and
quarrying of metal-
lic and non-metal-
lic minerals (in-
cluding sand, gra-
vel, stone, and
clay) and the mil-
ling 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
onshore oil and gas
wells on a con-
tract, fee or other
basis and the pro-
vision of geophy-
sical and other ex-
ploration services;
and the provision
of such oil and gas
field services as
chemical treatment,
plugging and aban-
doning of wells and
cementing or perfo-
rating well casings;
but not including
assets used in the
performance of any
of these activities
and services by in-
tegrated petroleum
and natural gas pro-
ducers for their
own account.......... 5 6 7 10.0
13.2 Exploration for petro-
leum and natural gas
deposits:
Includes assets used
for drilling of
wells and produc-
tion of petroleum
and natural gas,
inclding gathering
pipelines and rela-
ted storage facili-
ties, when these
are related acti-
vities undertaken
by petroleum and
natural gas produ-
cers................. 11 14 17 4.5
13.3 Petroleum refining:
Includes assets used
for the distilla-
tion, fractionation,
and catalytic cra-
cking of crude pe-
troleum into gaso-
line 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 com-
plete service sta-
tions, but not in-
cluding any of
these facilities
related to petro-
leum and natural
gas trunk pipelines.. 13 16 19 4.0
15.0 Contract construction:
Includes such assets
used by general buil-
ding, special trade,
heavy construction
and marine contrac-
tors; does not in-
clude assets used by
companies in perfor-
ming construction
services on their
own account.
15.1 Contract construc-
tion other than
marine............. 4 5 6 12.5
15.2 Marine contract
construction....... 9.5 12 14.5 5.0
Includes floa-
ting, self-pro-
pelled and other
drilling plat-
forms used in
offshore dril-
ling for oil
and gas.
20.0 Manufacture of foods
and beverages for
human consumption,
and certain related
products, such as
manufactured ice,
chewing gum, vege-
table and animal
fats and oils, and
prepared feeds for
animals and fowls:
20.1 Grain and grain
mill products:
Includes assets
used in the pro-
duction 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 pro-
duction 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 pro-
ducts:
Includes assets
used in the pro-
duction of oil
from vegetable
materials and the
manufacture of re-
lated vegetable
oil products...... 14.5 18 21.5 3.5
20.4 All other food and
kindred products:
Includes assets
used in the pro-
duction of foods,
beverages and re-
lated 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, ci-
gars, 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:
Includes assets used
in the production of
spun, woven or pro-
cessed yarns and
fabrics; of mattres-
ses, carpets, rugs,
pads, and sheets,
and of other pro-
ducts of natural or
synthetic fibers... 11 14 17 4.5
22.3 Finishing and dyeing:
Includes assets used
in the finishing
and dyeing of natu-
ral and synthetic
fibers, yarns, and
fabric............... 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 fa-
bricated textile
products by the
cutting and sewing
of woven fabrics,
other textile pro-
ducts and furs; but
does not include
assets used in the
manufacture of appa-
rel 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 opera-
tors and pulp
manufacturers
on their own
account............ 5 6 7 10.0
24.2 Sawing of dimensio-
nal stock from
logs:
Includes machinery
and equipment
installed in per-
manent or well-es-
tablished sawmills 8 10 12 6.5
24.3 Sawing of dimensional
stock from logs:
Includes machinery
and equipment ins-
talled in sawmills
characterized by
temporary founda-
tions and a lack,
or minimum amount,
of lumber-hand-
ling, drying, and
residue disposal
equipment and fa-
cilities........... 5 6 7 10.0
24.4 Manufacture of lumber,
wood products, and
furniture:
Includes assets used
in the production
of plywood, hard-
board, flooring,
veneers, furniture
and other wood
products, inclu-
ding 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 paper-
board, but does not
include the assets
used in pulpwood
logging nor the ma-
nufacture of hard-
board................ 13 16 19 4.5
26.2 Manufacture of paper
and paperboard:
Includes assets
used in the pro-
duction of con-
verted products
such as paper
coated off the
paper machines,
paper bags, paper
boxes, and enve-
lopes.............. 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 com-
mon processes, such
as letterpress,
lithography, gra-
vure, or screen;
the performance of
services for the
printing trade,
such as bookbinding,
typesetting, engra-
ving, photoengra-
ving, and electro-
typing; and the
publication of
newspapers, books,
and periodicals,
whether or not car-
ried out in con-
junction with prin-
ting................. 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 chemi-
cals; chemical pro-
ducts to be used in
further manufacture,
such as synthetic
fibers and plastics
materials, including
petro-chemical pro-
cessing beyond that
which is ordinarily
a part of petroleum
refining; and fi-
nished chemical
products, such as
pharmaceuticals,
cosmetics, soaps,
fertilizers, paints
and varnishes, ex-
plosives, and com-
pressed and liqui-
fied gases. Does
not include assets
used in the manu-
facture of finished
rubber and plastic
products or in the
production of natu-
ral gas products,
butane, propane, and
byproducts of natu-
ral gas production
plants............... 9 11 13 5.5
30.0 Manufacture of rubber
and plastic products:
30.1 Manufacture of rubber
products:
Includes assets
used for the
production of
products from
natural, synthe-
tic, or reclaimed
rubber, gutta per-
cha, balata, or
gutta siak, such
as tires, tubes,
rubber footwear,
mechanical rubber
goods, heels and
soles, flooring,
and rubber sun-
dries; and in the
recapping, retrea-
ding, and rebuil-
ding of tires...... 11 14 17 5.0
30.2 Manufacture of mis-
cellaneous finished
plastics products:
Includes assets
used in the manu-
facture of plas-
tics products and
the molding of pri-
mary plastics for
the trade. Does
not include assets
used in the manufac-
ture of basic plas-
tics materials nor
the manufacture of
phonograph records. 9 11 13 5.5
31.0 Manufacture of leather:
Includes assets used
in the tanning, cur-
rying, and finishing
of hides and skins:
the processing of
fur pelts; and the
manufacture of fi-
nished leather pro-
ducts, such as foot-
wear, belting, appa-
rel, luggage and si-
milar leather goods.. 9 11 13 5.5
32.0 Manufacture of stone,
clay, glass, and con-
crete products:
32.1 Manufacture of glass
products:
Includes assets
used in the pro-
duction of flat,
blown, or pressed
products of glass,
such as plate
safety and window
glass, glass con-
tainers, glassware
and fiberglass.
Does not include
assets used in the
manufacture of
lenses............. 11 14 17 6.0
32.0 Manufacture of stone,
clay, glass, and
concrete products,
continued:
32.2 Manufacture of cement:
Includes assets used
in the production
of cement, but does
not include any as-
sets used in the
manufacture of
concrete and con-
crete products nor
in any mining or
extraction process. 16 20 24 3.0
32.3 Manufacture of other
stone and clay pro-
ducts:
Includes assets
used in the manu-
facture of pro-
ducts from mate-
rials in the form
of clay and stone,
such as brick,
tile and pipe;
pottery and rela-
ted products, such
as vitreous-china,
plumbing fixtures,
earthenware and ce-
ramic insulating
materials; and also
includes assets
used in manufac-
ture of concrete
and concrete pro-
ducts. Does not
include assets
used in any mining
or extraction pro-
cesses............. 12 15 18 4.5
33.0 Manufacture of primary
metals:
Includes assets used
in the smelting and
refining of ferrous
and nonferrous me-
tals from ore, pig,
or scrap, the rol-
ling, drawing, and
alloying of ferrous
and nonferrous me-
tals; the manufac-
ture of castings,
forgings, and other
basic products of
ferrous and nonfer-
rous 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 fabri-
cated metal products:
Includes assets used
in the production
of metal cans, tin-
ware, nonelectric
heating apparatus,
fabricated struc-
tural metal pro-
ducts, metal stam-
pings and other
ferrous and nonfer-
rous metal and wire
products not else-
where classified..... 9.5 12 14.5 6.0
35.0 Manufacture of machi-
nery, except electri-
cal and transportation
equipment:
35.1 Manufacture of metal-
working machinery:
Includes assets
used in the pro-
duction of metal
cutting and for-
ming machines,
special dies,
tools, jigs, and
fixtures, and ma-
chine tool acces-
sories............. 9.5 12 14.5 5.5
35.2 Manufacture of other
machines:
Includes assets
used in the pro-
duction of such
machinery as
engines and tur-
bines; farm ma-
chinery, construc-
tion, and mining
machinery; general
and special indus-
trial machines in-
cluding office ma-
chines and non-e-
lectronic compu-
ting equipment;
miscellaneous ma-
chines except e-
lectrical equip-
ment and transpor-
tation equipment... 9.5 12 14.5 5.5
36.0 Manufacture of electri-
cal machinery, equip-
ment, and supplies:
Includes assets used
in the production of
machinery, apparatus,
and supplies for the
generation, storage,
transmission, trans-
formation, and uti-
lization of elec-
trical energy.
36.1 Manufacture of electrical
equipment:
Includes assets
used in the pro-
duction of such
machinery as elec-
tric test and dis-
tributing equip-
ment, electrical
industrial appa-
ratus, household
appliances, elec-
tric lighting and
wiring equipment;
electronic compo-
nents and accesso-
ries, phonograph
records, storage
batteries and ig-
nition systems.... 9.5 12 14.5 5.5
36.2 Manufacture of elec-
tronic products:
Includes assets
used in the pro-
duction of elec-
tronic detection,
guidance, control,
radiation, compu-
tation, test and
navigation equip-
ment and the com-
ponents thereof.
Does not include
the assets of ma-
nufacturers engaged
only in the pur-
chase and assembly
of components...... 6.5 8 9.5 7.5
37.0 Manufacture of trans-
portation equipment:
Includes assets used
in the production of
such machinery as
vehicles and equip-
ment for the trans-
portation of pas-
sengers and cargo.
37.1 Manufacture of motor
vehicles and parts:
Includes assets
used in the pro-
duction of auto-
mobiles, trucks,
trailers, buses
and their compo-
nent parts......... 9.5 12 14.5 5.5
37.2 Manufacture of aero-
space products:
Includes assets
used in the pro-
duction of air-
craft, spacecraft,
rockets, missiles
and their compo-
nent 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 ex-
cludes dry docks... 9.5 12 14.5 8.0
37.4 Manufacture of rail-
road transportation
equipment:
Includes assets
used in the buil-
ding and rebuil-
ding of railroad
locomotives, rail-
road cars, and
street railway
cars............... 9.5 12 14.5 5.5
38.0 Manufacture of profes-
sional, scientific,
and controlling ins-
truments; photogra-
phic and optical
goods; watches and
clocks:
Includes assets used
in the manufacture
of mechanical mea-
suring, engineering,
laboratory and scien-
tific research ins-
truments, optical
instruments and len-
ses; surgical, me-
dical and dental ins-
truments, equipment
and supplies; oph-
thalmic goods, pho-
tographic equipment
and supplies; and
watches and clocks... 9.5 12 14.5 5.5
39.0 Manufacture of products
not elsewhere classi-
fied:
Includes assets used
in the production
of jewelry; musical
instruments; toys
and sporting goods;
pens, pencils,
office and art
supplies. Also in-
cludes 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 non-
depreciable assets
included in Inter-
state Commerce Com-
mission accounts
enumerated for this
class.
40.1 Railroad machinery and
equipment............ 11 14 17 10.5
Includes assets clas-
sified in the follo-
wing Interstate
Commerce Commission
accounts:
Road accounts:
(16) Station and
office buil-
dings
(freight
handling ma-
chinery and
equipment
only)
(26) Communication
systems
(27) Signals and
interlockers
(37) Roadway
machines
(44) Shop ma-
chinery
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 im-
provements........... 24 30 36 5.0
Includes assets
classified in the
following Inter-
state Commerce
Commission road
accounts:
(6) Bridges,
trestles,
and culverts
(7) Elevated
structure
(13) Fences, snow-
sheds and
signs
(16) Station and
office buil-
dings (sta-
tions and
other opera-
ting struc-
tures only)
(17) Roadway
buildings
(18) Water stations
(19) Fuel stations
(20) Shops and
enginehouses
(31) Power trans-
mission sys-
tems
(35) Miscellaneous
structures
(39) Public im-
provements
construction
40.3 Railroad wharves
and docks............ 16 20 24 5.5
(23) Wharves and
docks
(24) Coal and ore
wharves
40.5 Railroad power
plant and equip-
ment:
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
power plant
equipment........ 22.5 28 33.5 7.5
41.0 Motor transport-passen-
gers:
Includes assets used
in the urban and
interurban commer-
cial and contract
carrying of passen-
gers 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 transpor-
tation assets inclu-
ded 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 passen-
gers 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, com-
mercial, and contract
carrying of petroleum,
gas, and other pro-
ducts by means of
pipes conveyors. The
trunk lines related
storage facilities
of integrated petro-
leum and natural
gasproducers are in-
cluded in this class. 17.5 22 26.5 3.0
48.0 Communication:
Includes assets used
in the furnishing
of point-to-point
communication ser-
vices by wire or
radio, whether in-
tended to be received
aurally or visually;
and radio broadcas-
ting 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 in-
tended to house
central office
equipment and
which are clas-
sified in Fede-
ral Communica-
tions Commis-
sion Account
No. 212........ 36 45 54 1.5
48.12 Central office
equipment:
Includes central
office swit-
ching and rela-
ted equipment
classified in
Federal Commu-
nications Com-
mission Account
No. 221........ 16 20 24 6.0
48.13 Station equipment:
Includes such
station appa-
ratus and con-
nections as
teletypewri-
ters, tele-
phones, booths,
and private
exchanges as
are classified
in Federal Com-
munications
Commission Ac-
count 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 Commu-
nications Com-
mission 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 sani-
tary services:
49.1 Electric Utilities:
Includes assets used
in the production,
transmission and
distribution of
electricity for
sale, including
related land im-
provements and
identified as:
49.11 Hydraulic pro-
duction plant:
Including dams,
flumes, canals
and waterways.
Also includes
jet engines
and other
internal
combustion
engines used
to operate
auxiliary
facilities
for load
shaving pur-
poses or in
case of
emergencies.. 40 50 60 1.5
49.12 Nuclear produc-
tion plant:
Includes jet
engines and
other inter-
nal combus-
tion engines
used to ope-
rate auxi-
liary facili-
ties for load
shaving pur-
poses or in
case of emer-
gencies...... 16 20 24 3.0
49.13 Steam production
plant:
Includes jet
engines and
other inter-
nal combus-
tion engines
used to ope-
rate auxi-
liary faci-
lities for
load shaving
purposes or
in case of
emergencies.. 22.5 28 33.5 2.5
49.14 Transmission
and distri-
bution faci-
lities......... 24 30 36 2.0
49.2 Gas Utilities:
Includes assets
used in the produc-
tion, transmission,
and distribution
of natural and ma-
nufactured gas for
sale, including
related land im-
provements and
identified as:
49.21 Distribution fa-
cilities:
Including gas
water heaters
and gas conver-
sion equipment
installed by
utility on cus-
tomers' premi-
ses 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 faci-
lities......... 17.5 22 26.5 3.0
49.3 Water utilities:
Includes assets
used in the
gathering,
treatment, and
commercial dis-
tribution of
water.............. 40 50 60 1.5
49.4 Central steam produc-
tion and distribu-
tion:
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 pur-
chasing, 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 restau-
rants, cafes, coin-
operated dispensing
machines, and in
brokerage of scrap
metal................ 8 10 12 6.5
65.0 Building Services:/3/
Provision of the ser-
vices of buildings,
whether for use by
others or for tax-
payer's own account.
Assets in the clas-
ses listed below
include the struc-
tural shells of buil-
dings and all integ-
ral parts thereof;
equipment that ser-
vices normal heating,
plumbing, air condi-
tioning, illumina-
tion, fire preven-
tion, and power re-
quirements; equip-
ment for the movement
of passengers and
freight within the
building; and any
additions to buil-
dings or their com-
ponents, capitalized
remodeling costs,
and partitions both
permanent and semi-
permanent. Struc-
tures, closely rela-
ted to the equipment
they house, which are
section 38 property
are not included.
See section 1.48-1
(e)(1) of the regu-
lations. Such struc-
tures are included
in asset guideline
classes appropriate
to the equipment to
which they are rela-
ted. Depreciation
periods for assets
used in the provision
of the services of
buildings and which
are not specified
below shall be deter-
mined according to
the facts and cir-
cumstances pertinent
to each asset,
except in the case
of farm buildings
and other building
structures for which
a specific class has
otherwise been desig-
nated.
65.1 Shelter, space, and
related building
services for manu-
facturing and for
machinery and equip-
ment repair activi-
ties:
65.11 Factories........... 45
65.12 Garages............. 45
65.13 Machine shops....... 45
65.14 Loft buildings...... 50
65.2 Building services
for the conduct of
wholesale and re-
tail trade, in-
cludes stores and
similar structures... 50
65.3 Building services
for residential
purposes:
65.31 Apartments.......... 40
65.32 Dwellings........... 45
65.4 Building services re-
lating to the provi-
sion of miscella-
neous services to
businesses and con-
sumers:
65.41 Office buildings.... 45
65.42 Storage:
65.421 Warehouses.......... 60
65.422 Grain elevators..... 60
65.43 Banks................. 50
65.44 Hotels................ 40
65.45 Theaters.............. 40
70.0 Services:
Includes assets used
in the provision of
personal services
such as those offered
by hotels and motels,
laundry and dry clea-
ning establishments,
beauty and barber
shops, photographic
studios and mortua-
ries. Includes assets
used in the provision
of professional ser-
vices such as those
offered by doctors,
dentists, lawyers,
accountants, archi-
tects, engineers,
and veterinarians.
Includes assets used
in the provision of
repair and mainte-
nance services and
those assets used
in providing fire
and burglary pro-
tection services.
Includes equipment or
facilities used by
cemetery organiza-
tions, news agen-
cies, teletype wire
services, plumbing
contractors, frozen
food lockers, re-
search laboratories,
hotels, and motels
(except office fur-
niture and fixtures). 8 10 12 6.5
79.0 Recreation and Amuse-
ment:
Includes assets used
in the provision of
amusement or enter-
tainment services on
payment of a fee or
admission charge, as
in the operation of
bowling alleys, bil-
liard and pool esta-
blishments, theaters,
concert halls, amuse-
ment parks, and mi-
niature golf courses.
Does not include such
assets which consist
primarily of specia-
lized land improve-
ments or structures,
such as golf courses,
sports stadia, race
tracks, ski slopes,
or buildings which
house bowling alleys. 8 10 12 6.5
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1 This class is established for a three-year transition period in accordance with Section 109(e)(1) of the Revenue Act of 1971 (P.L. 92-178, page 443, this Bulletin) and will be in effect for the period beginning January 1, 1971 and ending January 1, 1974 or at such earlier date as of which asset classes incorporating the assets herein described are represcribed or modified.
2 All assets classes defined below include subsidiary assets within the meaning of Section 109(e)(2) of the Revenue Act of 1971 whenever such assets are used in the economic activities specified. However, in accordance with the provisions of that section of the Act, during the period beginning on January 1, 1971 and ending January 1, 1974 or such earlier date as of which asset classes incorporating the subsidiary assets are represcribed or modified, taxpayers may exclude from an election all subsidiary assets in a specified class provided that at least 3 percent of all the assets placed in service in the class during the taxable year are subsidiary assets. See section 1.167(a)-11(b)(5)(vii) for application of 3 percent test.
3 This class is established for a three-year transition period in accordance with Section 109(e)(1) of the Revenue Act of 1971 (P.L. 92-178, page 443 (and will be in effect for the period beginning January 1, 1971 and ending January 1, 1974 or at such earlier date as of which asset classes incorporating the assets herein described are represcribed or modified. See Sections 1.167(a)-11(b)(3)(ii), 1.167(a)-11(b)(4)(a), and 1.167(a)-11(b)(5)(vi) of the regulations for special rules relating to real property.
Sec. 4. Effect on Other Documents.
.01 The provisions of Revenue Procedure 62-21, C.B. 1962-2, 418, including subsequent supplements and amendments thereto, are revoked for taxable years ending after December 31, 1970, except to the extent continued in effect for limited purposes under sections 1.167(a)-11(b)(5)(vi) and 1.167(a)-12. See section 1.167(a)-12 of the regulations with respect to the provisions of an elective guideline system for determining the reasonable allowance for depreciation for taxable years ending after December 31, 1970, for certain assets placed in service before January 1, 1971.
.02 Revenue Procedure 71-25, C.B. 1971-2, 553 is superseded, since the provisions stated therein are updated, and revised, and restated under the current statute and regulations.
.03 The asset guideline classes, asset guideline periods, asset depreciation ranges and asset guideline class repair allowances set forth in this Revenue Procedure will from time to time be supplemented and revised Taxpayers using this Revenue Procedure should apply it as supplemented and revised.
- Cross-Reference
(Also Part I, Section 167.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
