Internal Revenue Bulletin: 2007-17
April 23, 2007
Final regulations under section 263A of the Code relate to the definition of self-constructed property that is considered produced on a “routine and repetitive” basis in the ordinary course of a taxpayer’s trade or business for purposes of the simplified service cost method and the simplified production method provided by the regulations. For purposes of these methods, property is produced on a routine and repetitive basis only if numerous substantially identical assets are manufactured within a taxable year using standardized designs and assembly line techniques, and either the applicable recovery period of the property determined under section 168(c) is not longer than 3 years or the property is a material or supply that will be used and consumed within 3 years of being produced.
Final regulations under section 985 of the Code provide the translation rates that must be used when translating into dollars certain items and amounts transferred by a qualified business unit (QBU) to its home office or parent corporation for purposes of computing dollar approximate separate transactions method (DASTM) gain or loss.
Proposed regulations under section 901 of the Code provide guidance relating to the determination of the amount of taxes paid for purposes of section 901. A public hearing is scheduled for July 30, 2007.
This notice provides guidance with respect to the 50-percent additional first year depreciation deduction provided by section 1400N(d) of the Code for specified Gulf Opportunity Zone extension property and provides additional guidance with respect to the original use requirement. Notice 2006-77 clarified, modified, and amplified.
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