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Rev. Proc. 79-35

Rev. Proc. 79-35; 1979-2 C.B. 498

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.)

  • Code Sections
  • Language
    English
  • Tax Analysts Electronic Citation
    not available
Citations: Rev. Proc. 79-35; 1979-2 C.B. 498

Superseded by Rev. Proc. 83-35 Modified by Rev. Proc. 80-33

Rev. Proc. 79-35

Section 1. Purpose.

The Assistant Secretary (Tax Policy) of the Treasury prescribes, in this Revenue Procedure, under section 1.167(a)-11 of the Income Tax Regulations, a revised class 28.0, Manufacture of Chemicals and Allied Products, with an associated asset guideline period and ranges, and annual asset guideline repair allowance percentage; and a revised class 38.0, Manufacture of Professional, Scientific and Controlling Instruments.

The revised 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 and Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages for Assets Used in the Manufacture of Chemicals and Allied Products and in the Manufacture of Professional, Scientific and Controlling Instruments.

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

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                                                             Annual

 

                                                              Asset

 

                                   Asset Depreciation Range  Guide-

 

                                          (in years)          line

 

                                   ------------------------  Repair

 

 Asset                                     Asset             Allow-

 

 Guide-                                    Guide-             ance

 

  line     Description of Assets   Lower    line     Upper   Percent-

 

  Class         Included           Limit   Period    Limit     age

 

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 28.0  Manufacture of Chemicals

 

       and Allied Products:

 

         Includes assets to manu-

 

       facture basic organic and

 

       inorganic chemicals; chemi-

 

       cal products to be used in

 

       further manufacture, such

 

       as synthetic fibers and

 

       plastics materials; and

 

       finished chemical products.

 

 

        Includes assets used to

 

       further process man-made

 

       fibers, to manufacture

 

       plastic film, and to manu-

 

       facture non-woven fabrics,

 

       when such assets are located

 

       in the same plant in an

 

       integrated operation with

 

       chemical products producing

 

       assets. Also includes assets

 

       used to manufacture photo-

 

       graphic supplies, such as

 

       film, photographic paper,

 

       sensitized photographic

 

       paper, and developing

 

       chemicals.

 

 

        Includes all land improve-

 

       ments associated with plant

 

       site or production processes,

 

       such as effluent ponds and

 

       canals, provided such land

 

       improvements are depreciable

 

       but does not include buildings

 

       and structural components

 

       as defined in section 1.48-(e)

 

       of the regulations.

 

 

        Does not include assets

 

       used in the manufacture of

 

       finished rubber and plastic

 

       products or in the production

 

       of natural gas products,

 

       butane, propane, and by

 

       products of natural gas

 

       production plants __________ 7.5     9.5       11.5    12.5

 

 

 38.0  Manufacture of Professional,

 

       Scientific, and Controlling

 

       Instruments:

 

         Includes assets used in the

 

       manufacture of mechanical

 

       measuring, engineering, labora-

 

       tory and scientific research

 

       instruments, optical instru

 

       ments and lenses; surgical,

 

       medical, and dental instruments,

 

       equipment and supplies; oph-

 

       thalmic goods, photographic

 

       equipment, and watches and

 

       clocks _____________________ 9.5    12.0       14.5    5.5

 

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Sec. 3. Effect on Other Documents.

Rev. Proc. 77-10, 1977-1 C.B. 548, is modified by the establishment of a revised guideline class 28.0, Manufacture of Chemicals and Allied Products, with revised asset guideline period and ranges, and an annual asset guideline repair allowance percentage and a revised guidelines class 38.0, Manufacture of Professional, Scientific, and Controlling Instruments. Revised class 28.0 includes assets used to manufacture photographic supplies which were formerly in Class 38.0, Manufacture of Professional, Scientific and Controlling Instruments, as well as land improvement assets formerly included in class 00.3, Land Improvements.

Sec. 4. Effective Date.

The revisions set forth in this Revenue Procedure are effective for property placed in service in taxable years beginning after December 31, 1978.

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.)

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