Rev. Rul. 79-393

ISSUE

The Internal Revenue Service has reconsidered Rev. Rul. 75-92, 1975-1 C.B. 75, which describes the options available to a taxpayer in the application of Rev. Proc. 72-10, 1972-1 C.B. 721; Rev. Proc. 74-27, 1974-2 C.B. 480; and Rev. Proc. 74-30, 1974-2 C.B. 483; under the provisions of section 1.167(a)-11 of the Income Tax Regulations concerning the Class Life Asset Depreciation Range (CLADR). ( Rev. Proc. 72-10 has been superseded by Rev. Proc. 77-10, 1977-1 C.B. 548.)

RATIONALE

Some of the options discussed in Rev. Rul. 75-92 involved treatment of assets descrbed in an asset guideline class (33.1) and assets described in a subclass of that asset guideline class (33.11).

Rev. Proc. 79-60, page 574, this Bulletin, modifies section 2.02(i) of Rev. Proc. 77-10 to provide that assets included in certain identified classes and subclasses (including subclass 33.11) are not separately subject to possible exclusion from an election to apply sections 1.167(a)-11(b)(4)(ii) and 1.167(a)-11(b)(5)(v) of the regulations.

HOLDING

Rev. Rul. 75-92 is revoked and cannot be relied upon for taxable years ending after December 3, 1979, the effective date of Rev. Proc. 79-60.