Rev. Proc. 62-7

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

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

.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

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.