Table of Contents

• Rev. Rul. 2012-10
  • DRAFTING INFORMATION
• T.D. 9564
  • AGENCY:
  • ACTION:
  • SUMMARY:
  • DATES:
  • FOR FURTHER INFORMATION CONTACT:
  • SUPPLEMENTARY INFORMATION:
    • Background
    • Explanation of Provisions
    • I. Overview
    • II. Materials and Supplies Under §1.162-3
    • A. Definition of materials and supplies
    • B. Optional method for rotable or temporary spare parts
    • C. Election to deduct materials and supplies under the de minimis rule
    • D. Election to capitalize materials and supplies
    • III. Repairs Under §1.162-4
    • IV. Rentals Under §1.162-11 and Leased Property Under §1.167(a)-4
    • V. Amounts Paid to Acquire or Produce Tangible Property Under §1.263(a)-2T
    • A. Moving and reinstallation costs
    • B. Work performed prior to placing property into service
    • C. Transaction costs
    • D. De minimis rule
    • VI. Amounts to Improve Property Under §1.263(a)-3T
    • A. Overview
    • B. Determining the unit of property
    • 1. Overview
    • 2. Buildings and Structural Components
    • a. Condominiums and cooperatives
    • b. Leased buildings (taxpayer as lessee)
    • 3. Property Other Than Buildings
    • a. Plant property
    • b. Network assets
    • c. Leased property other than leased buildings
    • 4. Unit of Property for Improvements
    • 5. Unit of Property for Leasehold Improvements
    • 6. Additional Rules for Determining Units of Property
    • C. Special Rules for Improvements
    • 1. Improvements to Leased Property
    • a. Application of intangible regulation under §1.263(a)-4 to leasehold improvements
    • b. Operative rules for leasehold improvements
    • i. Lessee improvements
    • ii. Lessor improvements
    • 2. Certain Costs Incurred During an Improvement
    • 3. Removal Costs
    • D. Safe harbor for routine maintenance
    • E. Betterments
    • 1. Amounts Paid to Ameliorate Material Conditions and Defects
    • a. Knowledge of defect
    • b. Environmental cleanup of reacquired property
    • 2. Material Increase in Capacity, Productivity, Efficiency, Strength, or Quality
    • 3. Refreshing and Remodeling Buildings
    • F. Restorations
    • 1. Casualty Loss
    • 2. Rebuilding to Like-New Condition
    • 3. Replacement of Major Component or Substantial Structural Part
    • VII. Accounting and Disposition Rules for MACRS Property
    • A. Accounting for MACRS property
    • B. Dispositions of MACRS property
    • 1. Definition of Disposition
    • 2. Gain or Loss
    • 3. Determining the Appropriate Asset Disposed of
    • 4. Accounting for Assets Disposed Of
    • C. General asset accounts
    • 1. Establishing General Asset Accounts
    • 2. Depreciation of General Asset Account
    • 3. Disposition of an Asset from a General Asset Account
    • 4. Other Transactions
    • 5. Identification of Disposed Of or Converted Asset
    • VIII. Effective Dates and Changes in Methods of Accounting
    • Comments and Public Hearing
    • Special Analyses
  • Amendments to the Regulations
    • PART 1—INCOME TAXES
    • §1.162-6 [Removed]
  • Drafting Information
• Rev. Rul. 2012-11