Rev. Proc. 62-2

SECTION 1. BACKGROUND AND PURPOSE.

.01 Revenue Procedure 62-1, page 415, set 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 that Revenue Procedure 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.

.02 A study has now been completed of the average useful lives of certain items of machinery and equipment used largely in the apparel segment of the textile industry. The purpose of this Revenue Procedure, therefore, is to 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:

           MACHINERY AND EQUIPMENT USED IN APPAREL INDUSTRY

.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 January 15, 1962.

.02 Except for the difference in effective dates, as set forth in .01 above, the provisions of section 4 of Revenue Procedure 62-1 will be applicable to items of machinery and equipment shown in section 2 of this Revenue Procedure.

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. ITEMS OF TEXTILE MACHINERY AND EQUIPMENT NOT LISTED IN SECTION 2 OR IN REVENUE PROCEDURE 62-1.

The study of the average useful lives of other items of textile machinery and equipment not listed in Revenue Procedure 62-1, or section 2 above, is continuing. When this study is completed the results thereof will be published in the Internal Revenue Bulletin.

SEC. 6. 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, is hereby amplified.

SEC. 7. INQUIRIES.

Inquiries regarding this Revenue Procedure should be addressed to the Commissioner of Internal Revenue, Washington 25, D.C., Attention CP:A:UA.

¹ Also released as Technical Information Release 358, dated January 15, 1962; amplified by Rev. Proc. 62-7, page 428.