Rev. Rul. 64-115

Public Law 87-834 (enacted October 16, 1962), C.B. 1962-3, 111, added paragraph (2) of section 167(e) to the Internal Revenue Code of 1954 to provide that a taxpayer may, for his first taxable year beginning after December 31, 1962, elect to change his method of depreciation for section 1245 property (as defined in section 1245(a)(3) of the Code) from any declining balance or sum of the years-digits method to the straight-line method. This election shall be made by a statement on, or attached, to, the taxpayer's return filed not later than the last day prescribed by law (including extensions thereof) for filing the taxpayer's return for his first taxable year beginning after December 31, 1962. Furthermore, this election may be made without the consent of the Commissioner notwithstanding any provision to the contrary in an agreement under section 167(d) of the Code. Where an election is made with respect to any multiple asset account, the election shall be made with respect to all section 1245 property in the account, but not as to any other property in such account.

The taxpayer shall maintain records which permit specific identification of the section 1245 property with respect to which the election is made. The records should show the date of acquisition, cost or other basis, amounts recovered through depreciation and other allowances, the estimated salvage value, the character of such property, and the remaining useful life thereof.

¹ Based on Technical Information Release 550, dated Mar. 6, 1964.