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Rev. Proc. 74-32

Rev. Proc. 74-32; 1974-2 C.B. 487

DATED
DOCUMENT ATTRIBUTES
  • Cross-Reference

    26 CFR 601.105: Examination of returns and claims for refund, credit

    or abatement; determination of correct tax liability.

    (Also Part I, Section 167; 1.167(a)-11.)

  • Language
    English
  • Tax Analysts Electronic Citation
    not available
Citations: Rev. Proc. 74-32; 1974-2 C.B. 487

Superseded by Rev. Proc. 77-10

Rev. Proc. 74-32 1

Section 1. Purpose.

The purpose of this Revenue Procedure is to prescribe under section 1.167(a)-11 of the Income Tax Regulations a new supplementary asset guideline class, asset depreciation period and range, and annual repair allowance percentage for theme and amusement parks and a redefined asset guideline class for the recreation and entertainment industry.

Sec. 2. Asset Guideline Classes and Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages for Assets Used in the Recreation and Entertainment Industry and the Theme and Amusement Park Industry.

The asset guideline classes, asset guideline depreciation periods and ranges, and repair allowance percentages are established as set forth below.

 ---------------------------------------------------------------------

 

                                                            Annual

 

                                  Asset Depreciation        Asset

 

 Asset                             Range (in  years)        Guideline

 

 Guide-                       ____________________________  Repair

 

 line      Description of      Lower  Asset Guide-  Upper   Allowance

 

 Class     Assets Included     Limit  line Period   Limit   Percentage

 

 ---------------------------------------------------------------------

 

 79.0   Recreation:

 

 

            Includes assets used

 

        in the provision of en-

 

        tertainment services on

 

        payment of a fee or ad-

 

        mission charge, as in

 

        the operation of bowling

 

        alleys, billiard and

 

        pool establishments,

 

        theaters, concert halls,

 

        and miniature golf

 

        courses. Does not in-

 

        clude amusement and

 

        theme parks and assets

 

        which consist primarily

 

        of specialized land

 

        improvements or struc-

 

        tures, such as golf

 

        courses, sports stadia,

 

        race tracks, ski slopes,

 

        and buildings which

 

        house the assets used

 

        in entertainment servi-

 

        ces __________________   8         10         12        6.5

 

 

 80.0   Theme and amusement

 

         parks:

 

 

            Includes assets used

 

        in the provision of

 

        rides, attractions, and

 

        amusements in activi-

 

        ties defined as theme

 

        and amusement parks,

 

        and includes appurte-

 

        nances associated with

 

        a ride, attraction,

 

        amusement or theme set-

 

        ting within the park

 

        such as ticket booths,

 

        facades, shop interiors,

 

        and props, special pur-

 

        pose structures, and

 

        buildings other than

 

        warehouses, administra-

 

        tion buildings, hotels,

 

        and motels. Includes all

 

        land improvements for

 

        or in support of park

 

        activities, (e.g. par-

 

        king lots, sidewalks,

 

        waterways, bridges, fen-

 

        ces, landscaping, etc.)

 

        and support functions

 

        (e.g. food and beverage

 

        retailing, souvenir ven-

 

        ding, and other nonlod-

 

        ging accommodations) if

 

        owned by the park and

 

        provided exclusively for

 

        the benefit of park

 

        patrons.

 

 

            Theme and amusement

 

        parks are defined as

 

        combinations of amuse-

 

        ments, rides, and at-

 

        tractions which are

 

        permanently situated

 

        on park land and open

 

        to the public for the

 

        price of admission.

 

        This guideline class is

 

        a composite of all as-

 

        sets used in this in-

 

        dustry except transpor-

 

        tation equipment (gene-

 

        ral purpose trucks,

 

        cars, airplanes, etc.

 

        which are included in

 

        asset guideline classes

 

        with the prefix 00.2),

 

        assets used in the pro-

 

        vision of administra-

 

        tive services in asset

 

        guideline classes with

 

        the prefix 70.1, and

 

        warehouses, adminis-

 

        tration buildings, ho-

 

        tels, and motels _____   10        12.5       15        12.5

 

 

Sec. 3. Effect on Other Documents.

Rev. Proc. 72-10, 1972-1 C.B. 721, is modified by the new and revised asset guideline classes set forth in section 2 above with prescribed asset guideline depreciation periods, ranges, and repair allowance percentages as indicated.

Sec. 4. Effective Date.

The asset guideline classes, asset guideline depreciation periods and ranges, and repair allowance percentages for class 79.0 Recreation and entertainment and class 80.0 Theme and amusement parks are effective for property placed in service after December 31, 1973.

1 Also released as Technical Information Release 1305, dated August 23, 1974.

DOCUMENT ATTRIBUTES
  • Cross-Reference

    26 CFR 601.105: Examination of returns and claims for refund, credit

    or abatement; determination of correct tax liability.

    (Also Part I, Section 167; 1.167(a)-11.)

  • Language
    English
  • Tax Analysts Electronic Citation
    not available
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