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Rev. Proc. 76-37

Rev. Proc. 76-37; 1976-2 C.B. 659

DATED
DOCUMENT ATTRIBUTES
  • Cross-Reference

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

    credit or abatement; determinations of correct tax liability.

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

  • Code Sections
  • Language
    English
  • Tax Analysts Electronic Citation
    not available
Citations: Rev. Proc. 76-37; 1976-2 C.B. 659

Superseded by Rev. Proc. 77-10

Rev. Proc. 76-37 1

Section 1. Purpose.

The purpose of this Revenue Procedure is to prescribe under section 1.167(a)-11 of the Income Tax Regulations revised asset guideline classes for aircraft and air transportation assets and to prescribe asset guideline depreciation periods and ranges and annual asset guideline repair allowance percentages for these classes.

The revised guideline classes, asset guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages are set forth in section 2 of this Revenue Procedure.

Sec. 2. Asset Guideline Classes and Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages for Aircraft and for Assets Used In Air Transportation.

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

References in the "Description of Assets Included" for class 45.0 to Civil Aeronautics Board uniform accounts do not limit the applicability of the description to taxpayers regulated by the Civil Aeronautics Board. Rather, these references are included to provide a set of detailed definitions for all taxpayers who own depreciable assets used in air transportation.

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

 

                                    Asset Depreciation

 

                                     Range (in years)     Annual

 

                                   -------------------    Asset

 

 Asset                                    Asset           Guideline

 

 Guide-                                   Guide-          Repair

 

 line    Description of Assets     Lower  line    Upper   Allowance

 

 Class         Included            Limit  Period  Limit   Percentage

 

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

 

 

 00.21   Airplanes (airframes and

 

         engines), except those

 

         used in commercial or

 

         contract carrying of

 

         passengers or freight, and

 

         all helicopters (airframes

 

         and engines)_______________  5      6       7        14.0

 

 

 45.0    Air Transport:

 

           Includes assets (except

 

         helicopters) used in

 

         commercial and contract

 

         carrying of passengers and

 

         freight by air. For

 

         purposes of section

 

         1.167(a)-11(d)(2)(iv)(a)

 

         of the regulations,

 

         expenditures for "repair,

 

         maintenance, rehabilitation,

 

         or improvement" shall

 

         consist of direct

 

         maintenance expenses

 

         (irrespective or

 

         airworthiness provisions or

 

         charges) as defined by

 

         Civil Aeronautics Board

 

         uniform accounts 5200,

 

         maintenance burden

 

         (exclusive of expenses

 

         pertaining to maintenance

 

         buildings and improvements)

 

         as defined by Civil

 

         Aeronautics Board uniform

 

         accounts 5300, and

 

         expenditures which are not

 

         "excluded additions" as

 

         defined by section

 

         1.167(a)-11(d)(2)(vi) of

 

         the regulations and which

 

         would be charged to

 

         property and equipment

 

         accounts in the Civil

 

         Aeronautics Board uniform

 

         system of accounts ________  9.5      12    14.5     15.0

 

 

 45.1    Air Transport (restricted)

 

           Includes each asset

 

         described in the

 

         description of class 45.02

 

         which was held by the

 

         taxpayer on April 15, 1976,

 

         or is acquired by the

 

         taxpayer pursuant to a

 

         contract which was, on

 

         April 15, 1976, and at all

 

         times thereafter, binding

 

         on the taxpayer. This

 

         criterion of classification

 

         based on binding contract

 

         concept is to be applied in

 

         the same manner as under

 

         the general rules expressed

 

         in section 49(b)(1), (4),

 

         (5), and (8) of the

 

         Internal Revenue Code of

 

         1954 ______________________  5       6       7       15.0

 

 

Sec. 3. Effect On Other Documents.

Rev. Proc. 72-10 is modified by the represcription of asset guideline classes 00.21 "Airplanes" and 45.0 "Air Transport" and by the addition of class 45.1 "Air Transport (restricted)" with represcribed and additional guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages as set forth in Section 2 of this Revenue Procedure.

Sec. 4. Effective Date.

The asset guideline classes, asset guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages set forth in this Revenue Procedure are effective for property first placed in service after April 15, 1976. However, see the third sentence of section 1.167(a)-11(b)(4)(ii) of the regulations, which provides that neither the asset guideline period nor the lower limit of the asset depreciation range applicable to an asset placed in service during the taxable year may be longer than the respective period or limit in effect as of the first day of such taxable year.

1 Also released as IR-1690, dated November 4, 1976.

DOCUMENT ATTRIBUTES
  • Cross-Reference

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

    credit or abatement; determinations of correct tax liability.

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

  • Code Sections
  • Language
    English
  • Tax Analysts Electronic Citation
    not available
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