Revenue Procedures

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Revenue Procedures,Revenue Procedure 87-56,Internal Revenue Service,(Jan. 1, 1987)

Revenue Procedure 87-56, January 1, 1987.

Obsoleting in part: Rev. Proc. 83-35

Clarified and modified by: Rev. Proc. 88-22

Accelerated cost recovery: Recovery classes: Class lives: Recovery periods.– Recovery classes, class lives, and recovery periods for assigned property are set out. Rev. Proc. 83-35 obsoleted for property subject to section 168, as added by the Tax Reform Act of 1986. BACK REFERENCES: 87FED ¶1732A, 87FED ¶1732D.0045, 87FED ¶1732D.008, 87FED ¶1732D.08, 87FED ¶1732D.16, 87FED ¶1825.01 and 87FED ¶2732D.007.

SECTION 1. PURPOSE

The purpose of this revenue procedure is to set forth the class lives of property that are necessary to compute the depreciation allowances available under section 168 of the Internal Revenue Code, as amended by section 201(a) of the Tax Reform Act of 1986 (Act), 1986-3 (Vol. 1) C.B. 38. Rev. Proc. 87-57, page 687, this Bulletin, describes the applicable depreciation methods, applicable recovery periods, and applicable conventions that must be used in computing depreciation allowances under section 168.

SEC. 2. GENERAL RULES OF APPLICATION

.01 In general. This revenue procedure specifies class lives and recovery periods for property subject to depreciation under the general depreciation system provided in section 168(a) of the Code or the alternative depreciation system provided in section 168(g).

.02 Definition of Class Life. Except with respect to certain assigned property described in section 3 of this revenue procedure, for purposes of both the general depreciation system and the alternative depreciation system, the term “class life” means the class life that would be applicable for any property as of January 1, 1986, under section 167(m) of the Code (determined without regard to paragraph 4 thereof and determined as…...

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