Rev. Proc. 80-15
Rev. Proc. 80-15; 1980-1 C.B. 618
- 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.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Superseded by Rev. Proc. 83-35
Section 1. Purpose
In this revenue procedure, the Assistant Secretary (Tax Policy) of the Treasury prescribes certain changes with respect to the Class Life Asset Depreciation Range System. One purpose of this Revenue Procedure is to establish under section 1.167(a)-11 of the Income Tax Regulations a new class 57.0, Distributive Trades and Services, and a new class 57.1, Distributive Trades and Services--Billboards, Service Station Buildings and Petroleum Marketing Land Improvements. A further purpose is to clarify the description of assets included in class 00.12, Information Systems.
Class 57.0 includes assets formerly included in classes 13.4, Marketing of Petroleum and Petroleum Products (section 1245 property), 50.0, Wholesale and Retail Trade, 70.2, Personal and Professional Services, and 50.1 and 70.21 (Service Assets). Class 57.1 includes assets formerly included in class 13.4, Marketing of Petroleum and Petroleum Products (Section 1250 property, including service station buildings and all depreciable land improvements).
The new and clarified asset guideline classes, and associated asset guideline depreciation periods, asset depreciation ranges, and annual asset guideline repair allowance percentages are set forth in Section 2 of this Revenue Procedure.
Sec. 2. Asset Guideline Classes, Asset Guideline Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages
The asset guideline classes, asset guideline periods, asset depreciation ranges, and annual asset guideline repair allowance percentages are prescribed as set forth below.
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Asset Depreciation
Range (in years) Annual
---------------------- Asset
Asset Asset Guideline
Guide- Description of Assets Guide- Repair
line Included Lower line Upper Allowance
Class Limit Period Limit Percentage
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00.12 Information Systems:
Includes computers and
their peripheral equipment
used in administering nor-
mal business transactions
and the maintenance of
business records, their
retrieval and analysis.
Information systems are
defined as:
1) Computers: A computer
is an electronically acti-
vated device capable of
accepting information,
applying prescribed pro-
cesses to the information,
and supplying the results
of these processes with or
without human intervent-
ion. It usually consists
of a central processing
unit containing exten-
sive storage, logic, a-
rithmetic, and control
capabilities. Excluded
from this category are
adding machines, electro-
nic desk calculators, etc.
2) Peripheral equipment
consists of the auxiliary
machines that may be
placed under control of
the central processing
unit. Nonlimiting exam-
ples are: Card readers,
card punches, magnetic
tape feeds, high speed
printers, optical cha-
racter readers, tape cas-
settes, mass storage
units, paper tape equip-
ment, keypunches, data
entry devices, teleprin-
ters, terminals, tape
drives, disc drives, disc
files, disc packs, visual
image projector tubes,
card sorters, plotters,
and collators. Peripheral
equipment may be used on-
line or off-line.
Does not include equipment
that is an integral part
of other capital equipment
that is included in other
CLADR classes of economic
activity, i.e., computers
used primarily for process
or production control,
switching, channeling, and
automating distributive
trades and services such
as point of sale (POS)
computer systems ___________ 5 6 7 7.5
57.0 Distributive Trades and
Services:
Includes assets used in
wholesale and retail
trade, and personal and
professional services.
Includes Section 1245
assets used in marketing
petroleum and petroleum
products ___________________ 7 9 11 8
57.1 Distributive Trades and
Services--Billboard, Ser-
vice Station Buildings
and Petroleum Marketing
Land Improvements:
Includes section 1250
assets, including service
station buildings and de-
preciable land improve-
ments, whether section
1245 property or section
1250 property, used in
the marketing of petro-
leum and petroleum pro-
ducts, but not including
any of these facilities
related to petroleum and
natural gas trunk pipe-
lines. Includes car wash
buildings and related
land improvements. In-
cludes billboards,
whether such assets are
section 1245 property or
section 1250 property.
Excludes all other land
improvements, buildings
and structural components
as defined in section
1.48-1(e) of the regula-
tions ______________________ 16 20 24 5
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Sec. 3. Effect on Other Documents
Rev. Proc. 77-10, 1977-1 C.B. 548, as modified, is further modified by the deletion of classes 13.4, Marketing of Petroleum and Petroleum Products; 50.0, Wholesale and Retail Trade; 50.1, Wholesale and Retail Trade Service Assets; 70.2, Personal and Professional Services; and 70.21, Personal and Professional Services Service Assets.
Rev. Proc. 77-10, as subsequently modified, is revised by the prescription of new classes 57.0, Distributive Trades and Services, and 57.1, Distributive Trades and Services--Billboards, Service Station Buildings and Petroleum Marketing Land Improvements, and the clarification of class 00.12, Information Systems.
Sec. 4. Effective Date
This revenue procedure is effective for assets placed in service in taxable years ending on or after April 28, 1980. For taxable years ending prior to April 28, 1980, distributive trades and services automated equipment such as POS computer systems described herein are properly classified in asset guideline class 00.12, 50.0, or 70.2, depending upon which class was selected by the taxpayer on its original return.
- 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.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
