Rev. Proc. 62-7
Rev. Proc. 62-7; 1962-1 C.B. 428
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Obsoleted by Rev. Proc. 72-56
SECTION 1. BACKGROUND AND PURPOSE.
.01 Revenue Procedure 62-1, page 415, sets forth a schedule of revised average useful lives of selected major items of textile machinery and equipment and explained the effect of the revision on the remaining useful lives of such items of machinery and equipment then in use. Section 6 of Revenue Procedure 62-1 stated that a study was being made of the average useful lives of other items of textile machinery and equipment not listed therein, and that when the study was completed the results thereof would be published in the Internal Revenue Bulletin. Revenue Procedure 62-2, page --, was subsequently published setting forth revised average useful lives of additional items of textile machinery and equipment.
.02 A study has now been completed of the average useful lives of the remaining items of machinery and equipment used in the textile industry. The purpose of this Revenue Procedure, therefore, is to further amplify Revenue Procedure 62-1 by (1) setting forth a schedule of revised average useful lives which may be used as a guide in the computation of depreciation for such additional items of textile machinery and equipment, and (2) explaining the effect of the issuance of the schedule on the remaining useful lives of such items of textile machinery and equipment now in use.
SEC. 2. REVISED AVERAGE USEFUL LIVES.
As a consequence of the additional studies and based upon existing law and regulations, the previously suggested estimated average useful lives which will be considered the reasonably normal period of usefulness in the usual experience of users of several types of textile machinery and equipment have been revised as follows:
SCHEDULE I
Machinery and Equipment Used in the Manufacture of Knit Wear--Hosiery
and Fabrics
Years
Boarding Machines 8
Collection System Equipment--Knit Goods 10
Dryers--Hosiery and Knitted Wear 10
Knitting Machines 9
Loopers 9
Seaming Machines 9
Twist Setting Machines 9
SCHEDULE II
Items of Textile Machinery and Equipment Associated With the Major Items Listed and in Revenue Procedure 62-1
The items listed in this Schedule II are used in and are a part of the spinning and weaving segment of the textile industry that was the subject of the engineering study the results of which were announced on October 11, 1961. Although the average useful life findings of only the major items of spinning and weaving equipment were announced at that time, such findings of October 11, 1961, are to be regarded as having included the following detailed listing of items of spinning and weaving equipment.
Years
Ageing Machines 12
Atomizing Machines 12
Backfilling Machines 12
Backwashing Machines--Wool 12
Beating Machines 12
Bin Pilers 12
Blender-Feeders 15
Bobbin Cleaning Machines 15
Boil-off and Degumming Machines 12
Braiding Machines 15
Breaker--Bales 15
Brushing Machines 12
Buffing Machine--Rolls 15
Burring Machines 12
Button Breakers 12
Calenders 12
Carbonizing Machines 12
Card Coilers 15
Card Grinders 15
Card Strippers 15
Cloth Turning Machines 12
Compress, Press Raw Stock 12
Conditioning Machines--Cloth 12
Conditioning Machines--Yarn 15
Crabbing Machines 12
Creasing Machines 12
Creels 15
Curing Machines 12
Cutting and Folding Machines 12
Decating Machines 12
Doffing Machines 15
Doubling and Rolling Machines 12
Doubling Machines--Yarn 15
Drawing-in and Tying-in Machines 15
Dye Tanks, Tubs and Vats 12
End Collection Systems 15
Extractors 12
Fish Line Machines 15
Fulling Machines 12
Garnet Machines 15
Gilling Machines 15
Grease Recovery Machines--Wool 12
Heat Setting Machines 12
Inspecting Machines 12
J Boxes 12
Jacquard Card Cutters 15
Jacquard Heads 15
Jacquard Lacing Machines 15
Kettles, Copper or Steam Jacket 12
Kettles, Mixing 12
Kier Loading Machines 12
Kiers 12
Lap Preparing Machines 15
Lustering Machines 12
Mangles 12
Mercerizing Machines 12
Moistening Equipment 12
Napping Machines 12
Opening Machines 15
Padders 12
Picking Machines 15
Pile-cutting Machines 12
Pile-raising Machines 12
Pin Drafters 15
Plaiters 12
Polishing Machines 12
Pot Spinning Machines 15
Pre-Shrinking Machines 12
Print Machines 12
Quetschs 12
Quilling Machines 15
Redrawing Machines 15
Reeling Machines 15
Rolls--Cards 15
Rope Machines 15
Rubbing Machines 12
Saturators 12
Scouring and Cleaning Machines 12
Scouring Trains--Wool 12
Scrays 12
Scutchers--Cloth 12
Shearing Machines 12
Singeing Machines 12
Sizeing Machines 15
Skein Winders 15
Slitting Machines 12
Slubbers 15
Soaping Machines 12
Speeder--Roving 15
Spoolers 15
Steaming Machines 12
Sueding Machines 12
Tenter Frames 12
Textile Humidifying, Air Conditioning, and Cleaning Systems 15
Top Squaring Machines 15
Tow Converter 15
Tubing Machines 12
Velour Machines 12
Warpers 15
Waterproofing Machines 12
Waxing Machines 12
Winders and Batchers--Fabric 12
SCHEDULE III
Miscellaneous Items of Textile Machinery and Equipment Not
Otherwise Covered
Years
Card Clothing, Metallic 5
Concrete Settling Basins 40
Conveyor Equipment 10
Copper Rolls--Printing 8
Crocheting Machines 10
Embroidery Machines 10
Eyelet Machines 10
Facing Machines 10
Filter Beds--Water 25
Fringing Machines 10
Insert Machines 10
Instruments
Laboratory 10
Measuring 10
Optical 10
Recording 10
Textile Quality Control 6
Laminating Machines 10
Loom Winders 10
Material Handling Equipment 15
Measuring Machines 15
Mono-rail Systems, Over head 15
Necktie Machines 10
Non-Woven Fabric Machines 10
Pumps
Air 15
Chemical 15
Fire 25
Raw Water 20
Rayon 10
Shears 10
Softener--Water 15
Stretch-Yarn Machines 9
Tanks
Steel 25
Wood 20
Textile Department Accessories (Synthetic) 10
Textile Machinery (Synthetic) 15
Texturizing and Bulking Equipment 9
Throwing Equipment 9
Tufting Machines 10
Vacuum Suction Systems 15
SEC. 3. SCOPE AND OBJECTIVE.
.01 The revised average useful lives, shown in section 2, will be applicable only for those taxable years for which returns are due to be filed (not including any extensions of time) on or after the effective dates shown below:
Schedule I-effective date February 15, 1962
Schedule II-effective date October 11, 1961
Schedule III-effective date February 15, 1962
.02 Except for the difference in effective dates, as set forth in .01 above, the provisions of section 4 of Revenue Procedure 62-1 will be applicable to items of machinery and equipment shown in section 2 of this Revenue Procedure.
SEC. 4. PROCEDURE FOR REVISION OF USEFUL LIVES OF EXISTING MACHINERY AND EQUIPMENT
Revisions of useful lives of existing machinery and equipment of the types shown in section 2 will be made following the examples shown in section 5 of Revenue Procedure 62-1.
SEC. 5. EFFECT ON OTHER DOCUMENTS.
.01 The average useful lives of the items of textile machinery and equipment shown in section 2 above, supersede the lives assigned such items in the 1942 revision of Bulletin `F.'
.02 Revenue Procedure 62-1, page 415, and Revenue Procedure 62-2, page 420, are hereby amplified.
SEC. 6. INQUIRIES.
Inquiries regarding this Revenue Procedure should be addressed to the Commissioner of Internal Revenue, Washington 25, D.C., Attention T:S:EA.
1 Also released as Technical Information Release 362, dated February 16, 1962; this Revenue Procedure reflects the original document as published in I.R.B. 1962-10, 14, with changes which appear in the Special Announcement in I.R.B. 1962-26, 52.
- LanguageEnglish
- Tax Analysts Electronic Citationnot available