SERVICE WILL NO LONGER RULE ON THE DETERMINATION OF LIKE-KIND PROPERTY IN AN EXCHANGE OF BUSINESSES.

Rev. Proc. 89-63

SECTION 1. BACKGROUND

Rev. Proc. 89-3, 1989-1 I.R.B. 29, sets forth areas of the Internal Revenue Code under the jurisdiction of the Associate Chief Counsel (Technical) in which the Internal Revenue Service will not issue advance rulings or determination letters.

Section 5 of Rev. Proc. 89-3 is entitled "AREAS UNDER EXTENSIVE STUDY IN WHICH RULINGS OR DETERMINATION LETTERS WILL NOT BE ISSUED UNTIL THE SERVICE RESOLVES THE ISSUE THROUGH PUBLICATION OF A REVENUE RULING, REVENUE PROCEDURE, REGULATIONS OR OTHERWISE."

SEC. 2. PROCEDURE

Section 5 of Rev. Proc. 89-3 is amplified by adding the following:

Section 1031(a)(1) -- Determination of Like-Kind Property in an Exchange of Businesses -- The manner in which like-kind property (other than real property) will be determined under section 1031 of the Code in a transaction involving the exchange of the assets of similar or identical businesses.

SEC. 3. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 89-3 is amplified.

DRAFTING INFORMATION

The principal author of this revenue procedure is Christopher Rogers of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue procedure, contact Mr. Rogers on (202) 377-9583 (not a toll-free call).