Guidance Regarding Dispositions of Tangible Depreciable Property; Correction, 78696-78698 [2014-30186]
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78696
Federal Register / Vol. 79, No. 250 / Wednesday, December 31, 2014 / Rules and Regulations
the change, the applicant must comply
with certain regulations in effect on the
date of application for the change. The
FAA has determined that the Model
MBB–BK117 D–2 must also comply
with the noise certification
requirements of 14 CFR part 36; and the
FAA must issue a finding of regulatory
adequacy under § 611 of Public Law 92–
574, the ‘‘Noise Control Act of 1972.’’
Regulatory Basis for Special Conditions
The Administrator has determined
that the applicable airworthiness
regulations (that is, 14 CFR part 29) do
not contain adequate or appropriate
safety standards for the MBB–BK117
D22 model helicopter because of a novel
or unusual design feature. Therefore,
special conditions are prescribed under
the provisions of 14 CFR 21.16.
The FAA issues special conditions, as
defined in § 11.19, in accordance with
§ 11.38, and they become part of the
type certification basis under § 21.101.
Special conditions are initially
applicable to the model for which they
are issued. Should the type certificate
for that model be amended later to
include any other model that
incorporates the same novel or unusual
design feature, or should any other
model already included on the same
type certificate be modified to
incorporate the same novel or unusual
design feature, the special conditions
would also apply to the other model.
Novel or Unusual Design Features
The MBB–BK117 D–2 model
helicopter will incorporate the
following novel or unusual design
feature:
• A 30-minute power rating.
Applicability
These special conditions are
applicable to the Airbus Helicopters
Deutschland GmbH Model MBB–BK117
D2 helicopter. Should Airbus
Helicopters Deutschland GmbH apply at
a later date for an amendment to the
type certificate to include another
model incorporating the same novel or
unusual design feature, the special
conditions would apply to that model as
well.
tkelley on DSK3SPTVN1PROD with RULES
Conclusion
This action affects only certain novel
or unusual design features on the Airbus
Helicopters Deutschland GmbH Model
MBB–BK117 D–2 helicopter. It is not a
rule of general applicability.
List of Subjects in 14 CFR Part 29
Aircraft, Aviation safety, Reporting
and recordkeeping requirements.
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The authority citation for these
special conditions is as follows:
Authority: 49 U.S.C. 106(g), 40113, 44701–
44702, 44704.
The Special Conditions
Accordingly, pursuant to the
authority delegated to me by the
Administrator, the following special
conditions are issued as part of the type
certification basis for Airbus Helicopters
Deutschland GmbH Model MBB–BK117
D–2 helicopters. Unless stated
otherwise, all requirements in
§§ 29.1049, 29.1305 and 29.1521 remain
unchanged.
Section 29.1049 Hover cooling test
procedures. In addition to the
requirements of this section, for
rotorcraft with a 30-minute power
rating, the hovering cooling provisions
at the 30-minute power rating must be
shown—
(a) At maximum weight or at the
greatest weight at which the rotorcraft
can hover (if less), at sea level, with the
power required to hover but not more
than the 30-minute power, in the
ground effect in still air, until at least 5
minutes after the occurrence of the
highest temperature recorded, or until
the continuous time limit of the 30minute power rating if the highest
temperature recorded is not stabilized
before.
(b) At maximum weight and at the
altitude resulting in zero rate of climb
for this configuration, until at least 5
minutes after the occurrence of the
highest temperature recorded, or until
the continuous time limit of the 30minute power rating if the highest
temperature recorded is not stabilized
before.
Section 29.1305 Powerplant
instruments, at Amendment 29–40. In
addition to the requirements of this
section, a means must be provided to
indicate to the pilot when the engine is
at the 30-minute power level, when the
event begins, and when the time
interval expires.
Section 29.1521 Powerplant
limitations, at Amendment 29–41. In
addition to the requirements of this
section, use of the 30-minute power
must be limited to no more than 30
minutes per use. The use of the 30minute power must also be limited by:
(1) The maximum rotational speed,
which may not be greater than—
(i) The maximum value determined
by the rotor design; or
(ii) The maximum value demonstrated
during the type tests;
(2) The maximum allowable turbine
inlet or turbine outlet gas temperature
(for turbine engines);
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(3) The maximum allowable power or
torque for each engine, considering the
power input limitations of the
transmission with all engines operating;
(4) The maximum allowable power or
torque for each engine considering the
power input limitations of the
transmission with one engine
inoperative;
(5) The time limit for the use of the
power corresponding to the limitations
established in paragraphs (1) through (4)
above; and
(6) The maximum allowable engine
and transmission oil temperatures, if the
time limit established in paragraph (5)
above exceeds 2 minutes.
Issued in Fort Worth, Texas, on December
19, 2014.
Lance T. Gant
Acting Directorate Manager, Rotorcraft
Directorate, Aircraft Certification Service.
[FR Doc. 2014–30562 Filed 12–30–14; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9689]
RIN 1545–BL52
Guidance Regarding Dispositions of
Tangible Depreciable Property;
Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendment.
AGENCY:
This document contains
corrections to final regulations (TD
9689) that were published in the
Federal Register on Monday, August 18,
2014 (79 FR 48661). The final
regulations are regarding dispositions of
property subject to depreciation under
section 168 of the Internal Revenue
Code.
DATES: This correction is effective on
December 31, 2014 and applicable
beginning August 18, 2014.
FOR FURTHER INFORMATION CONTACT:
Kathleen Reed, at (202) 317–7005 (not a
toll free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The final regulations (TD 9689) that
are the subject of this correction are
under section 168 of the Internal
Revenue Code.
Need for Correction
As published, the final regulations
(TD 9689) contain errors that may prove
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Federal Register / Vol. 79, No. 250 / Wednesday, December 31, 2014 / Rules and Regulations
(ii) * * * The gain of $232 is subject to
section 1245 to the extent of the depreciation
allowed or allowable for the account, plus
the expensed cost for assets in the account,
less the amounts previously recognized as
ordinary income ($1,232 + $0 ¥ $0 =
$1,232). * * *
(iii) * * *
to be misleading and are in need of
clarification.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendments:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Section 1.168(i)–1 also issued under 26
U.S.C. 168(i)(4).
Par. 2. Section 1.168(i)–1 is amended
as follows:
■ 1. Paragraph (c)(2)(ii)(D) is revised.
■ 2. The third sentences of paragraphs
(e)(3)(ii)(B), Example 2. (ii) and
(e)(3)(iii)(A) are revised.
■ 3. Paragraph (e)(3)(iii)(C)(3) is revised.
■ 4. The second sentence of paragraph
(e)(3)(v)(B)(1) is revised.
■ 5. In paragraph (f)(3) remove the
phrase ‘‘Allowed Depreciation
Deductions Allocated and Apportioned
to a Separate Category Total/Allowed
Depreciation Deductions and
Apportioned to Foreign Source
Income.’’ and add in its place ‘‘Allowed
Depreciation Deductions Allocated and
Apportioned to a Separate Category/
Total Allowed Depreciation Deductions
and Apportioned to Foreign Source
Income.’’
■ 6. In the first line of paragraph
(j)(3)(ii), remove the phrase ‘‘allowed
or’’.
■ 7. Paragraph (m)(4) is revised.
The revisions read as follows:
■
§ 1.168(i)–1
General asset accounts.
tkelley on DSK3SPTVN1PROD with RULES
*
*
*
*
*
(c) * * *
(2) * * *
(ii) * * *
(D) Assets not eligible for any
additional first year depreciation
deduction, including assets for which
the taxpayer elected not to deduct the
additional first year depreciation,
provided by, for example, section
168(k), section 168(l), section 168(m),
section 168(n), section 1400L(b), or
section 1400N(d), must be grouped into
a separate general asset account;
*
*
*
*
*
(e) * * *
(3) * * *
(ii) * * *
(B) * * *
Example 2. * * *
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Jkt 235001
(A) * * * The adjusted depreciable
basis of the asset at the time of the
disposition, as determined under the
applicable convention for the general
asset account in which the asset was
included, equals the unadjusted
depreciable basis of the asset less the
greater of the depreciation allowed or
allowable for the asset. The allowable
depreciation is computed by using the
depreciation method, recovery period,
and convention applicable to the
general asset account in which the asset
was included and by including the
portion of the additional first year
depreciation deduction claimed for the
general asset account that is attributable
to the asset disposed of. * * *
*
*
*
*
*
(C) * * *
(3) The depreciation reserve of the
general asset account is reduced by the
greater of the depreciation allowed or
allowable for the asset as of the end of
the taxable year immediately preceding
the year of disposition. The allowable
depreciation is computed by using the
depreciation method, recovery period,
and convention applicable to the
general asset account in which the asset
was included and by including the
portion of the additional first year
depreciation deduction claimed for the
general asset account that is attributable
to the asset disposed of; and
*
*
*
*
*
(v) * * *
(B) * * *
(1) The adjusted depreciable basis of
the asset at the time of disposition
equals the unadjusted depreciable basis
of the asset less the greater of the
depreciation allowed or allowable for
the asset. The allowable depreciation is
computed by using the depreciation
method, recovery period, and
convention applicable to the general
asset account in which the asset was
included and by including the portion
of the additional first year depreciation
deduction claimed for the general asset
account that is attributable to the
relinquished asset. * * * * *
(m) * * *
(4) Optional application of TD 9564.
A taxpayer may choose to apply
§ 1.168(i)–1T as contained in 26 CFR
part 1 edition revised as of April 1,
2014, to taxable years beginning on or
after January 1, 2012. However, a
taxpayer may not apply § 1.168(i)–1T as
PO 00000
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Fmt 4700
Sfmt 4700
78697
contained in 26 CFR part 1 edition
revised as of April 1, 2014, to taxable
years beginning on or after January 1,
2014.
*
*
*
*
*
■ Par. 3. Section 1.168(i)–7 is amended
by revising paragraph (e)(4) to read as
follows:
§ 1.168(i)–7
property.
Accounting for MACRS
*
*
*
*
*
(e) * * *
(4) Optional application of TD 9564.
A taxpayer may choose to apply
§ 1.168(i)–7T as contained in 26 CFR
part 1 edition revised as of April 1,
2013, to taxable years beginning on or
after January 1, 2012. However, a
taxpayer may not apply § 1.168(i)–7T as
contained in 26 CFR part 1 edition
revised as of April 1, 2013, to taxable
years beginning on or after January 1,
2014.
*
*
*
*
*
■ Par. 4. Section 1.168(i)–8 is amended
as follows:
■ 1. Remove the phrase ‘‘allowed or’’
wherever it appears in paragraphs
(f)(2)(ii), (f)(3)(ii), (h)(2)(iv), and
(h)(3)(iv).
■ 2. Revise paragraphs (h)(2)(iii) and
(h)(3)(iii).
The revisions read as follows:
§ 1.168(i)–8
property.
Dispositions of MACRS
*
*
*
*
*
(h) * * *
(2) * * *
(iii) The depreciation reserve of the
multiple asset account or pool must be
reduced by the greater of the
depreciation allowed or allowable for
the asset disposed of as of the end of the
taxable year immediately preceding the
year of disposition. The allowable
depreciation is computed by using the
depreciation method, recovery period,
and convention applicable to the
multiple asset account or pool in which
the asset disposed of was included and
by including the additional first year
depreciation deduction claimed for the
asset disposed of; and
*
*
*
*
*
(3) * * *
(iii) The depreciation reserve of the
asset must be reduced by the greater of
the depreciation allowed or allowable
for the disposed portion as of the end of
the taxable year immediately preceding
the year of disposition. The allowable
depreciation is computed by using the
depreciation method, recovery period,
and convention applicable to the asset
in which the disposed portion was
included and by including the portion
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78698
Federal Register / Vol. 79, No. 250 / Wednesday, December 31, 2014 / Rules and Regulations
of the additional first year depreciation
deduction claimed for the asset that is
attributable to the disposed portion; and
*
*
*
*
*
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2014–30186 Filed 12–30–14; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF DEFENSE
Office of the Secretary
B. Public Comments
32 CFR Part 199
[DoD–2010–HA–0068]
RIN 0720–AB39
Civilian Health and Medical Program of
the Uniformed Services (CHAMPUS);
TRICARE Retired Reserve
A. Establishment of the TRICARE
Retired Reserve Program (§ 199.25(a))
TRICARE Retired Reserve
(TRR) is a premium-based TRICARE
health plan available for purchase
worldwide by qualified members of the
Retired Reserve and by qualified
survivors of TRR members. This final
rule responds to public comments
received to an interim final rule that
was published in the Federal Register
on August 6, 2010 (75 FR 47452–47457).
That rule established requirements and
procedures to implement the TRR
program in fulfillment of section 705 of
the National Defense Authorization Act
for Fiscal Year 2010 (NDAA–10) (Pub. L.
111–84). This final rule also revises
requirements and procedures as
indicated.
SUMMARY:
This rule is effective January 30,
2015.
Jody
Donehoo, Defense Health Agency,
TRICARE Health Plan, telephone (703)
681–0039. Questions regarding payment
of specific claims under the TRICARE
allowable charge method should be
addressed to the appropriate TRICARE
contractor.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
tkelley on DSK3SPTVN1PROD with RULES
I. Introduction and Background
A. Overview
An interim final rule was published
in the Federal Register on August 6,
2010 (75 FR 47452–47457), that
established requirements and
procedures to implement the TRICARE
Retired Reserve program in fulfillment
VerDate Sep<11>2014
16:08 Dec 30, 2014
Jkt 235001
The interim final rule was published
in the Federal Register on August 6,
2010. We received 92 online comments.
We thank those who provided
comments. Specific matters raised by
those who submitted comments are
summarized below.
II. Provisions of the Rule Regarding the
TRICARE Retired Reserve Program
Office of the Secretary,
Department of Defense.
ACTION: Final rule.
AGENCY:
DATES:
of section 705 of the National Defense
Authorization Act for Fiscal Year 2010
(NDAA–10) (Pub. L. 111–84). Section
705 added new section 1076e to Title
10, United States Code. Section 1076e
allows members of the Retired Reserve
who are qualified for non-regular
retirement, but are not yet 60 years of
age, as well as certain survivors to
qualify to purchase medical coverage
equivalent to the TRICARE Standard
(and Extra) benefit unless that member
is either enrolled in, or eligible to enroll
in, a health benefits plan under Chapter
89 of Title 5, United States Code.
1. Provisions of Interim Final Rule.
This paragraph describes the nature,
purpose, statutory basis, scope, and
major features of TRICARE Retired
Reserve, a premium-based medical
coverage program that was made
available for purchase worldwide by
certain members of the Retired Reserve,
their family members and their
surviving family members. TRICARE
Retired Reserve is authorized by 10
U.S.C. 1076e.
The major features of the program
include making coverage available for
purchase by any Retired Reserve
member who is qualified for non-regular
retirement, but is not yet 60 years of age,
unless that member is either enrolled in,
or eligible to enroll in, a health benefit
plan under Chapter 89 of Title 5, United
States Code, as well as certain survivors
of Retired Reserve members as specified
below. The amount of the premium that
qualified members and qualified
survivors pay is prescribed by the
Assistant Secretary of Defense for
Health Affairs (ASD(HA)) and
determined using an appropriate
actuarial basis. There is one premium
for member-only coverage and a second
premium for member and family
coverage. Additionally, TRICARE rules
outlined in Part 199 of Title 32 of the
CFR relating to the TRICARE Standard
and Extra programs apply unless
otherwise specified.
Under TRICARE Retired Reserve,
qualified members (or their qualified
survivors) may purchase either the
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Frm 00010
Fmt 4700
Sfmt 4700
member-only type of coverage or the
member and family type of coverage by
submitting a completed request in the
appropriate format along with an initial
payment of the applicable premium at
the time of enrollment. When their
coverage becomes effective, TRICARE
Retired Reserve beneficiaries receive the
TRICARE Standard (and Extra) benefit.
TRICARE Retired Reserve features the
deductible and cost sharing provisions
of the TRICARE Standard (and Extra)
plan for retired members and
dependents of retired members. Both
the member and the member’s covered
family members are provided access
priority for care in military treatment
facilities on the same basis as retired
members and their family members who
are not enrolled in TRICARE Prime.
2. Analysis of Major Public
Comments. Three commenters
suggested alternative plans to include a
Preferred Provider Organization (PPO)
with group discount until age 60;
eligibility for Reserve Retirees to use the
Department of Veterans Affairs health
care benefits and services; and a tier
system that would allow a member to
reduce premiums by choosing higher
deductibles. Another commenter
suggested a tier system with higher
deductibles or different options for cost
shares and deductibles.
Three commenters requested the
implementation/passing of the TRR
benefit. One commenter inquired how
TRR fits into ‘‘Health Care Reform’’
making health care affordable for every
citizen.
Response. In regards to the comments
suggesting alternative plans, we
observed that the specific provisions of
the law governing TRR does not allow
implementation of alternative plans as
suggested. In fulfillment of law, TRR is
a premium-based TRICARE health plan
that features the cost sharing,
deductible, and catastrophic cap
provisions of TRICARE Standard (and
Extra) as they pertain to retirees and
their family members.
TRICARE Extra is similar to a PPO.
TRICARE Standard beneficiaries,
including TRR members and their
covered family members, are using
TRICARE Extra when they receive care
from a provider in the TRICARE
Network. TRICARE Extra features cost
shares that are five percent lower than
TRICARE Standard cost shares. All
Department of Veterans Affairs hospitals
and clinics nationwide currently are in
the TRICARE Network through active
agreements with TRICARE contractors.
Multiple premium tiers with various
levels of deductibles would not be
allowed by the statutory provisions that
require TRR to be offered under one
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]]>Agencies
[Federal Register Volume 79, Number 250 (Wednesday, December 31, 2014)]
[Rules and Regulations]
[Pages 78696-78698]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-30186]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9689]
RIN 1545-BL52
Guidance Regarding Dispositions of Tangible Depreciable Property;
Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendment.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to final regulations (TD
9689) that were published in the Federal Register on Monday, August 18,
2014 (79 FR 48661). The final regulations are regarding dispositions of
property subject to depreciation under section 168 of the Internal
Revenue Code.
DATES: This correction is effective on December 31, 2014 and applicable
beginning August 18, 2014.
FOR FURTHER INFORMATION CONTACT: Kathleen Reed, at (202) 317-7005 (not
a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9689) that are the subject of this
correction are under section 168 of the Internal Revenue Code.
Need for Correction
As published, the final regulations (TD 9689) contain errors that
may prove
[[Page 78697]]
to be misleading and are in need of clarification.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is corrected by making the following
correcting amendments:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.168(i)-1 also issued under 26 U.S.C. 168(i)(4).
0
Par. 2. Section 1.168(i)-1 is amended as follows:
0
1. Paragraph (c)(2)(ii)(D) is revised.
0
2. The third sentences of paragraphs (e)(3)(ii)(B), Example 2. (ii) and
(e)(3)(iii)(A) are revised.
0
3. Paragraph (e)(3)(iii)(C)(3) is revised.
0
4. The second sentence of paragraph (e)(3)(v)(B)(1) is revised.
0
5. In paragraph (f)(3) remove the phrase ``Allowed Depreciation
Deductions Allocated and Apportioned to a Separate Category Total/
Allowed Depreciation Deductions and Apportioned to Foreign Source
Income.'' and add in its place ``Allowed Depreciation Deductions
Allocated and Apportioned to a Separate Category/Total Allowed
Depreciation Deductions and Apportioned to Foreign Source Income.''
0
6. In the first line of paragraph (j)(3)(ii), remove the phrase
``allowed or''.
0
7. Paragraph (m)(4) is revised.
The revisions read as follows:
Sec. 1.168(i)-1 General asset accounts.
* * * * *
(c) * * *
(2) * * *
(ii) * * *
(D) Assets not eligible for any additional first year depreciation
deduction, including assets for which the taxpayer elected not to
deduct the additional first year depreciation, provided by, for
example, section 168(k), section 168(l), section 168(m), section
168(n), section 1400L(b), or section 1400N(d), must be grouped into a
separate general asset account;
* * * * *
(e) * * *
(3) * * *
(ii) * * *
(B) * * *
Example 2. * * *
(ii) * * * The gain of $232 is subject to section 1245 to the
extent of the depreciation allowed or allowable for the account,
plus the expensed cost for assets in the account, less the amounts
previously recognized as ordinary income ($1,232 + $0 - $0 =
$1,232). * * *
(iii) * * *
(A) * * * The adjusted depreciable basis of the asset at the time
of the disposition, as determined under the applicable convention for
the general asset account in which the asset was included, equals the
unadjusted depreciable basis of the asset less the greater of the
depreciation allowed or allowable for the asset. The allowable
depreciation is computed by using the depreciation method, recovery
period, and convention applicable to the general asset account in which
the asset was included and by including the portion of the additional
first year depreciation deduction claimed for the general asset account
that is attributable to the asset disposed of. * * *
* * * * *
(C) * * *
(3) The depreciation reserve of the general asset account is
reduced by the greater of the depreciation allowed or allowable for the
asset as of the end of the taxable year immediately preceding the year
of disposition. The allowable depreciation is computed by using the
depreciation method, recovery period, and convention applicable to the
general asset account in which the asset was included and by including
the portion of the additional first year depreciation deduction claimed
for the general asset account that is attributable to the asset
disposed of; and
* * * * *
(v) * * *
(B) * * *
(1) The adjusted depreciable basis of the asset at the time of
disposition equals the unadjusted depreciable basis of the asset less
the greater of the depreciation allowed or allowable for the asset. The
allowable depreciation is computed by using the depreciation method,
recovery period, and convention applicable to the general asset account
in which the asset was included and by including the portion of the
additional first year depreciation deduction claimed for the general
asset account that is attributable to the relinquished asset. * * * * *
(m) * * *
(4) Optional application of TD 9564. A taxpayer may choose to apply
Sec. 1.168(i)-1T as contained in 26 CFR part 1 edition revised as of
April 1, 2014, to taxable years beginning on or after January 1, 2012.
However, a taxpayer may not apply Sec. 1.168(i)-1T as contained in 26
CFR part 1 edition revised as of April 1, 2014, to taxable years
beginning on or after January 1, 2014.
* * * * *
0
Par. 3. Section 1.168(i)-7 is amended by revising paragraph (e)(4) to
read as follows:
Sec. 1.168(i)-7 Accounting for MACRS property.
* * * * *
(e) * * *
(4) Optional application of TD 9564. A taxpayer may choose to apply
Sec. 1.168(i)-7T as contained in 26 CFR part 1 edition revised as of
April 1, 2013, to taxable years beginning on or after January 1, 2012.
However, a taxpayer may not apply Sec. 1.168(i)-7T as contained in 26
CFR part 1 edition revised as of April 1, 2013, to taxable years
beginning on or after January 1, 2014.
* * * * *
0
Par. 4. Section 1.168(i)-8 is amended as follows:
0
1. Remove the phrase ``allowed or'' wherever it appears in paragraphs
(f)(2)(ii), (f)(3)(ii), (h)(2)(iv), and (h)(3)(iv).
0
2. Revise paragraphs (h)(2)(iii) and (h)(3)(iii).
The revisions read as follows:
Sec. 1.168(i)-8 Dispositions of MACRS property.
* * * * *
(h) * * *
(2) * * *
(iii) The depreciation reserve of the multiple asset account or
pool must be reduced by the greater of the depreciation allowed or
allowable for the asset disposed of as of the end of the taxable year
immediately preceding the year of disposition. The allowable
depreciation is computed by using the depreciation method, recovery
period, and convention applicable to the multiple asset account or pool
in which the asset disposed of was included and by including the
additional first year depreciation deduction claimed for the asset
disposed of; and
* * * * *
(3) * * *
(iii) The depreciation reserve of the asset must be reduced by the
greater of the depreciation allowed or allowable for the disposed
portion as of the end of the taxable year immediately preceding the
year of disposition. The allowable depreciation is computed by using
the depreciation method, recovery period, and convention applicable to
the asset in which the disposed portion was included and by including
the portion
[[Page 78698]]
of the additional first year depreciation deduction claimed for the
asset that is attributable to the disposed portion; and
* * * * *
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2014-30186 Filed 12-30-14; 8:45 am]
BILLING CODE 4830-01-P
