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## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.

INCOME TAX
Rev. Proc. 2023-24, page 1207.

Revenue Procedure 2023-24 updates the List of Automatic
Procedures as established in Treasury and IRS guidance
for taxpayer-initiated requests for changes in methods of
accounting. An “automatic change” is a change in method
of accounting for which the taxpayer is eligible under section 5.01(1) of Revenue Procedure 2015-13 for requesting the Commissioner’s consent for the requested year of
change.

Finding Lists begin on page ii.

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

Bulletin No. 2023–28
July 10, 2023

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.

Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

July 10, 2023 

Bulletin No. 2023–28

Part III
26 CFR 601.204: Changes in accounting periods and in methods of accounting.
(Also Part I, §§ 56, 61, 77, 118, 162, 163, 166, 167, 168, 171, 174, 179D, 181, 194, 195, 197, 248, 263, 263A, 267, 280F, 404, 446, 447, 448, 451, 454, 455, 460,
461, 467, 471, 472, 475, 481, 585, 709, 807, 816, 832, 833, 846, 860A-860G, 861, 904, 953, 985, 1272, 1273, 1278, 1281, 1363, 1400I, 1400L, 1400N; 1.61-1,
1.61-4, 1.61-8, 1.77-1, 1.77-2, 1.118-2, 1.162-1, 1.162-3, 1.162-4, 1.162-11, 1.162-12, 1.166-1, 1.166-2, 1.166-4, 1.167(a)-2, 1.167(a)-3(b), 1.167(a)-4, 1.167(a)-7,
1.167(a)-8, 1.167(a)-11, 1.167(a)-14, 1.167(e)-1, 1.168(d)-1, 1.168(i)-1, 1.168(i)-4, 1.168(i)-6, 1.168(i)-7, 1.168(i)-8, 1.168(k)-1, 1.168(k)-2, 1.171-4, 1.174-1, 1.1743, 1.174-4, 1.179-5, 1.181-2, 1.194-1, 1.195-1, 1.197-2, 1.248-1, 1.263(a)-1, 1.263(a)-2, 1.263(a)-3, 1.263(a)-4, 1.263(a)-5, 1.263A-1, 1.263A-2, 1.263A-3, 1.263A-4,
1.263A-7, 1.267(a)-1, 1.280F-6, 1.404(b)-1T, 1.446-1, 1.446-1T, 1.446-2, 1.446-5, 1.446-6, 1.446-7, 1.448-1, 1.448-2, 1.451-1, 1.451-3, 1.451-8, 1.454-1, 1.455-6,
1.460-1, 1.460-3, 1.460-4, 1.461-1, 1.461-4, 1.461-5, 1.467-1, 1.471-1, 1.471-2, 1.471-3, 1.471-4, 1.471-5, 1.471-8, 1.472-1, 1.472-2, 1.472-6, 1.472-8, 1.481-1,
1.481-4, 1.709-1, 1.709-2, 1.832-4, 1.832-5, 1.860A-6, 1.861-18, 1.985-5, 1.985-8, 1.1016-3, 1.1245-3, 1.1272-1, 1.1273-1, 1.1273-2, 1.1275-2, 1.1363-2, 1.1374-4,
1.1400L(b)-1, 1.1502-68.)

Rev. Proc. 2023-24
LIST OF AUTOMATIC CHANGES�����������������������������������������������������������������������������������������������������������������������������������������������1212
SECTION 1. GROSS INCOME (§ 61) �������������������������������������������������������������������������������������������������������������������������������������������1212
.01 Up-front Payments for Network Upgrades received by Utilities �������������������������������������������������������������������������������������������1212
SECTION 2. COMMODITY CREDIT LOANS (§ 77)�������������������������������������������������������������������������������������������������������������������1212
.01 Treating amounts received as loans����������������������������������������������������������������������������������������������������������������������������������������1212
SECTION 3. TRADE OR BUSINESS EXPENSES (§ 162)�����������������������������������������������������������������������������������������������������������1212
.01 Advances made by a lawyer on behalf of clients �������������������������������������������������������������������������������������������������������������������1212
.02 ISO 9000 Costs�����������������������������������������������������������������������������������������������������������������������������������������������������������������������1212
.03 Restaurant or tavern smallwares packages�����������������������������������������������������������������������������������������������������������������������������1212
.04 Timber grower fertilization costs �������������������������������������������������������������������������������������������������������������������������������������������1212
.05 Materials and supplies�������������������������������������������������������������������������������������������������������������������������������������������������������������1213
.06 Repair and maintenance costs�������������������������������������������������������������������������������������������������������������������������������������������������1213
.07 Wireline network asset maintenance allowance and units of property methods of accounting under Rev. Proc. 2011-27���1213
.08 Wireless network asset maintenance allowance and units of property methods of accounting under Rev. Proc. 2011-28���1213
.09 Method of accounting under Rev. Proc. 2011-43 for taxpayers in the business of transporting, delivering, or selling
electricity���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������1213
.10 Method of accounting under Rev. Proc. 2013-24 for taxpayers in the business of generating steam or electric power.�������1213
.11 Cable network asset capitalization methods of accounting under Rev. Proc. 2015-12����������������������������������������������������������1213
.12 Natural gas transmission and distribution property method of accounting under Rev. Proc. 2023-15����������������������������������1214
SECTION 4. BAD DEBTS (§ 166)�������������������������������������������������������������������������������������������������������������������������������������������������1217
.01 Change from reserve method to specific charge-off method �������������������������������������������������������������������������������������������������1217
.02 Conformity election by bank after previous election automatically revoked�������������������������������������������������������������������������1217
SECTION 5. INTEREST EXPENSE (§ 163) AND AMORTIZABLE BOND PREMIUM (§ 171)�����������������������������������������������1218
.01 Revocation of § 171(c) election ���������������������������������������������������������������������������������������������������������������������������������������������1218
.02 Change to comply with § 163(e)(3) ���������������������������������������������������������������������������������������������������������������������������������������1218
SECTION 6. DEPRECIATION OR AMORTIZATION (§ 56(a)(1), 167, 168, 197, 280F(a), or 1502, OR FORMER
§ 56(g)(4)(A), 168, 1400I, 1400L, or 1400N(d))�������������������������������������������������������������������������������������������������������1218
.01 Impermissible to permissible method of accounting for depreciation or amortization�����������������������������������������������������������1218
.02 Permissible to permissible method of accounting for depreciation ���������������������������������������������������������������������������������������1223
.03 Sale, lease, or financing transactions���������������������������������������������������������������������������������������������������������������������������������������1225
.04 Change in general asset account treatment due to a change in the use of MACRS property�������������������������������������������������1226
.05 Change in method of accounting for depreciation due to a change in the use of MACRS property �������������������������������������1227
.06 Depreciation of qualified non-personal use vans and light trucks������������������������������������������������������������������������������������������1227
.07 Impermissible to permissible method of accounting for depreciation or amortization for disposed depreciable or
amortizable property���������������������������������������������������������������������������������������������������������������������������������������������������������������1228
.08 Tenant construction allowances ���������������������������������������������������������������������������������������������������������������������������������������������1229

Bulletin No. 2023–28

1207

July 10, 2023

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Safe harbor method of accounting for determining the depreciation of certain tangible assets used by wireless
telecommunications carriers under Rev. Proc. 2011-22���������������������������������������������������������������������������������������������������������1230
Partial dispositions of tangible depreciable assets to which the IRS’s adjustment pertains (§ 168; § 1.168(i)-8)�����������������1230
Depreciation of leasehold improvements (§§ 167, 168, and 197; § 1.167(a)-4)���������������������������������������������������������������������1231
Permissible to permissible method of accounting for depreciation of MACRS property (§ 168; §§ 1.168(i)-1,
1.168(i)-7, and 1.168(i)-8)�������������������������������������������������������������������������������������������������������������������������������������������������������1232
Disposition of a building or structural component (§ 168; § 1.168(i)-8) �������������������������������������������������������������������������������1234
Dispositions of tangible depreciable assets (other than a building or its structural components) (§ 168; § 1.168(i)-8)���������1237
Dispositions of tangible depreciable assets in a general asset account (§ 168(i)(4); § 1.168(i)-1)�����������������������������������������1240
Summary of certain changes in methods of accounting related to dispositions of MACRS property�����������������������������������1242
Depreciation of fiber optic transfer node and fiber optic cable used by a cable system operator (§§ 167 and 168)���������������1244
Qualified improvement property placed in service after December 31, 2017 (§ 168)�����������������������������������������������������������1244
Certain late elections under §§ 168 and 1502 or revocation of certain elections under § 168 (§ 168(g)(7), (k)(5), (k)
(7), and (k)(10); §§ 1.168(k)-2 and 1.1502-68)�����������������������������������������������������������������������������������������������������������������������1245
Change in depreciation as a result of applying the additional first year depreciation regulations (§ 168(k);
§§ 1.168(k)-2 and 1.1502-68)�������������������������������������������������������������������������������������������������������������������������������������������������1246
Depreciation of tangible property under § 168(g) by controlled foreign corporations. ���������������������������������������������������������1248
Late elections under § 168(j)(8), § 168(l)(3)(D), and § 181(a)(1).�����������������������������������������������������������������������������������������1248

SECTION 7. RESEARCH AND EXPERIMENTAL EXPENDITURES (§ 174)���������������������������������������������������������������������������1249
.01 Changes to a different method or different amortization period���������������������������������������������������������������������������������������������1249
.02 Specified Research or Experimental Expenditures�����������������������������������������������������������������������������������������������������������������1250
SECTION 8. ELECTIVE EXPENSING PROVISIONS (§ 179D) �������������������������������������������������������������������������������������������������1252
.01 Deduction for Energy Efficient Commercial Buildings (§ 179D) �����������������������������������������������������������������������������������������1252
SECTION 9. COMPUTER SOFTWARE EXPENDITURES (§§ 162, 167, and 197) �������������������������������������������������������������������1252
.01 Computer software expenditures���������������������������������������������������������������������������������������������������������������������������������������������1252
SECTION 10. START-UP EXPENDITURES AND ORGANIZATIONAL FEES (§§ 195, 248 AND 709)���������������������������������1252
.01 Start-up expenditures���������������������������������������������������������������������������������������������������������������������������������������������������������������1252
.02 Organizational expenditures under § 248�������������������������������������������������������������������������������������������������������������������������������1253
.03 Organization fees under § 709������������������������������������������������������������������������������������������������������������������������������������������������1253
SECTION 11. CAPITAL EXPENDITURES (§ 263) ���������������������������������������������������������������������������������������������������������������������1254
.01 Package design costs���������������������������������������������������������������������������������������������������������������������������������������������������������������1254
.02 Line pack gas or cushion gas���������������������������������������������������������������������������������������������������������������������������������������������������1254
.03 Removal costs�������������������������������������������������������������������������������������������������������������������������������������������������������������������������1254
.04 Distributor commissions���������������������������������������������������������������������������������������������������������������������������������������������������������1255
.05 Intangibles�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������1255
.06 Rotable spare parts safe harbor method.���������������������������������������������������������������������������������������������������������������������������������1255
.07 Repairable and reusable spare parts ���������������������������������������������������������������������������������������������������������������������������������������1255
.08 Tangible property �������������������������������������������������������������������������������������������������������������������������������������������������������������������1256
.09 Railroad track structure expenditures�������������������������������������������������������������������������������������������������������������������������������������1259
.10 Remodel-refresh safe harbor method �������������������������������������������������������������������������������������������������������������������������������������1259
SECTION 12. UNIFORM CAPITALIZATION (UNICAP) METHODS (§ 263A)�����������������������������������������������������������������������1261
.01 Certain uniform capitalization (UNICAP) methods used by resellers and reseller-producers�����������������������������������������������1261
.02 Certain uniform capitalization (UNICAP) methods used by producers and reseller-producers���������������������������������������������1264
.03 Impact fees �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������1265
.04 Change to capitalizing environmental remediation costs under § 263A���������������������������������������������������������������������������������1265
.05 Change in allocating environmental remediation costs under § 263A�����������������������������������������������������������������������������������1265
.06 Safe harbor methods under § 263A for certain dealerships of motor vehicles�����������������������������������������������������������������������1265
.07 Change to not apply § 263A to one or more plants removed from the list of plants that have a preproductive period
in excess of 2 years.�����������������������������������������������������������������������������������������������������������������������������������������������������������������1266
.08 Change to a reasonable allocation method described in § 1.263A-1(f)(4) for self-constructed assets�����������������������������������1266
.09 Real property acquired through foreclosure���������������������������������������������������������������������������������������������������������������������������1267

July 10, 2023

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Bulletin No. 2023–28

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Sales-Based Royalties�������������������������������������������������������������������������������������������������������������������������������������������������������������1267
Treatment of Sales-Based Vendor Chargebacks under a Simplified Method�������������������������������������������������������������������������1267
U.S. ratio method �������������������������������������������������������������������������������������������������������������������������������������������������������������������1268
Depletion���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������1269
Interest capitalization �������������������������������������������������������������������������������������������������������������������������������������������������������������1270
Change to not apply § 263A to replanting costs for lost or damaged citrus plants pursuant to § 263A(d)(2)(C) �����������������1270
Small business taxpayer exception from requirement to capitalize costs under § 263A �������������������������������������������������������1270
Recharacterizing costs under the simplified resale method, simplified production method, or the modified
simplified production method�������������������������������������������������������������������������������������������������������������������������������������������������1271
Late revocation of elections under § 263A(d)(3) �������������������������������������������������������������������������������������������������������������������1272

SECTION 13. LOSSES, EXPENSES AND INTEREST WITH RESPECT TO TRANSACTIONS BETWEEN
RELATED TAXPAYERS (§ 267)���������������������������������������������������������������������������������������������������������������������������1272
.01 Change to comply with § 267�������������������������������������������������������������������������������������������������������������������������������������������������1272
SECTION 14. DEFERRED COMPENSATION (§ 404)�����������������������������������������������������������������������������������������������������������������1272
.01 Deferred compensation�����������������������������������������������������������������������������������������������������������������������������������������������������������1272
.02 Grace period contributions �����������������������������������������������������������������������������������������������������������������������������������������������������1273
SECTION 15. METHODS OF ACCOUNTING (§ 446)�����������������������������������������������������������������������������������������������������������������1273
.01 Change in overall method from the cash method, or from an accrual method with regard to purchases and sales of
inventories and the cash method for all other items, to an accrual method ���������������������������������������������������������������������������1273
.02 Multi-year insurance policies for multi-year service warranty contracts�������������������������������������������������������������������������������1275
.03 Nonaccrual-experience method�����������������������������������������������������������������������������������������������������������������������������������������������1276
.04 Interest accruals on short-term consumer loans—Rule of 78’s method���������������������������������������������������������������������������������1276
.05 Film producer’s treatment of certain creative property costs�������������������������������������������������������������������������������������������������1277
.06 Deduction of incentive payments to health care providers�����������������������������������������������������������������������������������������������������1277
.07 Change by bank for uncollected interest. �������������������������������������������������������������������������������������������������������������������������������1277
.08 Change from the cash method to an accrual method for specific items ���������������������������������������������������������������������������������1278
.09 Multi-year service warranty contracts�������������������������������������������������������������������������������������������������������������������������������������1278
.10 Overall cash method for specified transportation industry taxpayers�������������������������������������������������������������������������������������1279
.11 Change to overall cash/hybrid method for certain banks �������������������������������������������������������������������������������������������������������1280
.12 Change to overall cash method for farmers����������������������������������������������������������������������������������������������������������������������������1281
.13 Nonshareholder contributions to capital under § 118�������������������������������������������������������������������������������������������������������������1281
.14 Debt issuance costs�����������������������������������������������������������������������������������������������������������������������������������������������������������������1282
.15 Transfers of interties under the safe harbor described in Notice 2016-36 (§ 118).�����������������������������������������������������������������1282
.16 Change to or from the net asset value (NAV) method.�����������������������������������������������������������������������������������������������������������1282
.17 Small business taxpayer changing the overall method of accounting to the cash method, or to a method of
accounting in which a small business taxpayer uses an accrual method for purchases and sales of inventories and
uses the cash method for computing all other items of income and expense�������������������������������������������������������������������������1283
SECTION 16. TAXABLE YEAR OF INCLUSION (§ 451)�����������������������������������������������������������������������������������������������������������1284
.01 Accrual of interest on nonperforming loans���������������������������������������������������������������������������������������������������������������������������1284
.02 Advance rentals�����������������������������������������������������������������������������������������������������������������������������������������������������������������������1284
.03 State or local income or franchise tax refunds �����������������������������������������������������������������������������������������������������������������������1285
.04 Capital Cost Reduction Payments�������������������������������������������������������������������������������������������������������������������������������������������1285
.05 Credit card annual fees �����������������������������������������������������������������������������������������������������������������������������������������������������������1285
.06 Retainages�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������1285
.07 Change in applicable financial statements (AFS) for purposes of applying certain revenue recognition methods of
accounting. �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������1285
.08 Changes in the timing of income recognition under § 451(b) and (c) �����������������������������������������������������������������������������������1287
SECTION 17. OBLIGATIONS ISSUED AT DISCOUNT (§ 454)�������������������������������������������������������������������������������������������������1294
.01 Series E, EE or I U.S. savings bonds��������������������������������������������������������������������������������������������������������������������������������������1294
SECTION 18. PREPAID SUBSCRIPTION INCOME (§ 455)�������������������������������������������������������������������������������������������������������1294
.01 Prepaid subscription income���������������������������������������������������������������������������������������������������������������������������������������������������1294

Bulletin No. 2023–28

1209

July 10, 2023

SECTION 19. SPECIAL RULES FOR LONG-TERM CONTRACTS (§ 460) �����������������������������������������������������������������������������1294
.01 Small business taxpayer exceptions from requirement to account for certain long-term contracts under § 460 or to
capitalize costs under § 263A for certain home construction contracts ���������������������������������������������������������������������������������1294
SECTION 20. TAXABLE YEAR INCURRED (§ 461) �����������������������������������������������������������������������������������������������������������������1294
.01 Timing of incurring liabilities for employee compensation���������������������������������������������������������������������������������������������������1295
(1) Self-insured employee medical benefits�������������������������������������������������������������������������������������������������������������������������1295
(2) Bonuses���������������������������������������������������������������������������������������������������������������������������������������������������������������������������1295
(3) Vacation pay, sick pay, and severance pay �������������������������������������������������������������������������������������������������������������������1296
(4) Commissions �����������������������������������������������������������������������������������������������������������������������������������������������������������������1296
.02 Timing of incurring liabilities for real property taxes, personal property taxes, state income taxes, and
state franchise taxes�����������������������������������������������������������������������������������������������������������������������������������������������������������������1297
.03 Timing of incurring liabilities under a workers’ compensation act, tort, breach of contract, or violation of law �����������������1297
.04 Timing of incurring certain liabilities for payroll taxes ���������������������������������������������������������������������������������������������������������1298
.05 Cooperative advertising�����������������������������������������������������������������������������������������������������������������������������������������������������������1298
.06 Timing of incurring certain liabilities for services or insurance���������������������������������������������������������������������������������������������1299
.07 Rebates and allowances�����������������������������������������������������������������������������������������������������������������������������������������������������������1299
.08 Ratable accrual of real property taxes�������������������������������������������������������������������������������������������������������������������������������������1299
.09 California Franchise Taxes�����������������������������������������������������������������������������������������������������������������������������������������������������1299
.10 Gift cards issued as a refund for returned goods���������������������������������������������������������������������������������������������������������������������1299
.11 Timing of incurring liabilities under the recurring item exception to the economic performance rules �������������������������������1300
.12 Economic performance safe harbor for ratable service contracts�������������������������������������������������������������������������������������������1300
.13 Timing of incurring inventory costs���������������������������������������������������������������������������������������������������������������������������������������1300
.14 Alternative Cost Method���������������������������������������������������������������������������������������������������������������������������������������������������������1300
SECTION 21. RENT (§ 467)�����������������������������������������������������������������������������������������������������������������������������������������������������������1302
.01 Change from an improper method of inclusion of rental income or expense to inclusion in accordance with
the rent allocation �������������������������������������������������������������������������������������������������������������������������������������������������������������������1302
SECTION 22. INVENTORIES (§ 471)�������������������������������������������������������������������������������������������������������������������������������������������1302
.01 Cash discounts�������������������������������������������������������������������������������������������������������������������������������������������������������������������������1302
.02 Estimating inventory “shrinkage”�������������������������������������������������������������������������������������������������������������������������������������������1303
.03 Qualifying volume-related trade discounts�����������������������������������������������������������������������������������������������������������������������������1303
.04 Impermissible methods of identification and valuation of inventories. ���������������������������������������������������������������������������������1303
.05 Core Alternative Valuation Method ���������������������������������������������������������������������������������������������������������������������������������������1304
.06 Replacement cost for automobile dealers’ parts inventory�����������������������������������������������������������������������������������������������������1304
.07 Replacement cost for heavy equipment dealers’ parts inventory�������������������������������������������������������������������������������������������1305
.08 Rotable spare parts �����������������������������������������������������������������������������������������������������������������������������������������������������������������1305
.09 Advance Trade Discount Method�������������������������������������������������������������������������������������������������������������������������������������������1305
.10 Permissible methods of identification and valuation of inventories.��������������������������������������������������������������������������������������1305
.11 Change in the official used vehicle guide utilized in valuing used vehicles���������������������������������������������������������������������������1306
.12 Invoiced advertising association costs for new vehicle retail dealerships �����������������������������������������������������������������������������1306
.13 Rolling-average method of accounting for inventories�����������������������������������������������������������������������������������������������������������1307
.14 Sales-Based Vendor Chargebacks�������������������������������������������������������������������������������������������������������������������������������������������1307
.15 Certain changes to the cost complement of the retail inventory method �������������������������������������������������������������������������������1307
.16 Certain changes within the retail inventory method���������������������������������������������������������������������������������������������������������������1307
.17 Change from currently deducting inventories to permissible methods of identification and valuation of inventories.���������1308
.18 Small business taxpayer § 471(c) inventory methods. �����������������������������������������������������������������������������������������������������������1308
.19 Changes within a § 471(c) inventory method. �����������������������������������������������������������������������������������������������������������������������1309
.20 Change from a small business taxpayer § 471(c) inventory method to an inventory method under § 471(a).�����������������������1310
SECTION 23. LAST-IN, FIRST-OUT (LIFO) INVENTORIES (§ 472) ���������������������������������������������������������������������������������������1310
.01 Change from the LIFO inventory method�������������������������������������������������������������������������������������������������������������������������������1310
.02 Determining current-year cost under the LIFO inventory method�����������������������������������������������������������������������������������������1311
.03 Alternative LIFO inventory method for retail automobile dealers�����������������������������������������������������������������������������������������1312
.04 Used vehicle alternative LIFO method�����������������������������������������������������������������������������������������������������������������������������������1312
.05 Determining the cost of used vehicles purchased or taken as a trade-in���������������������������������������������������������������������������������1313

July 10, 2023

1210

Bulletin No. 2023–28

.06
.07
.08
.09
.10

Change to the inventory price index computation (IPIC) method �����������������������������������������������������������������������������������������1313
Changes within the inventory price index computation (IPIC) method���������������������������������������������������������������������������������1314
Changes to the Vehicle-Pool Method�������������������������������������������������������������������������������������������������������������������������������������1315
Changes within the used vehicle alternative LIFO method ���������������������������������������������������������������������������������������������������1315
Changes to dollar-value pools of manufacturers���������������������������������������������������������������������������������������������������������������������1315

SECTION 24. MARK-TO-MARKET ACCOUNTING METHOD (Including § 475)�������������������������������������������������������������������1316
.01 Commodities dealers, securities traders, and commodities traders electing to use the mark-to-market method of
accounting under § 475(e) or (f)���������������������������������������������������������������������������������������������������������������������������������������������1316
.02 Taxpayers requesting to change their method of accounting from the mark-to-market method of accounting
described in § 475 to a realization method�����������������������������������������������������������������������������������������������������������������������������1317
SECTION 25. BANK RESERVES FOR BAD DEBTS (§ 585)�����������������������������������������������������������������������������������������������������1318
.01 Changing from the § 585 reserve method to the § 166 specific charge-off method���������������������������������������������������������������1318
SECTION 26. INSURANCE COMPANIES (§§ 807, 816, 832, 833)���������������������������������������������������������������������������������������������1319
.01 Safe harbor method of accounting for premium acquisition expenses�����������������������������������������������������������������������������������1319
.02 Certain changes in method of accounting for organizations to which § 833 applies�������������������������������������������������������������1320
.03 Change in qualification as life/nonlife insurance company under § 816 �������������������������������������������������������������������������������1320
.04 Changes in basis of computing reserves under § 807(f)���������������������������������������������������������������������������������������������������������1320
SECTION 27. DISCOUNTED UNPAID LOSSES (§ 846)�������������������������������������������������������������������������������������������������������������1322
.01 Composite method for discounting unpaid losses�������������������������������������������������������������������������������������������������������������������1322
SECTION 28. REAL ESTATE MORTGAGE INVESTMENT CONDUIT (REMIC) (§§ 860A-860G)���������������������������������������1322
.01 REMIC Inducement Fees �������������������������������������������������������������������������������������������������������������������������������������������������������1322
SECTION 29. FUNCTIONAL CURRENCY (§ 985)���������������������������������������������������������������������������������������������������������������������1323
.01 Change in functional currency �����������������������������������������������������������������������������������������������������������������������������������������������1323
SECTION 30. ORIGINAL ISSUE DISCOUNT (§§ 1272, 1273)���������������������������������������������������������������������������������������������������1323
.01 De minimis original issue discount (OID) �����������������������������������������������������������������������������������������������������������������������������1323
.02 Proportional method of accounting for OID on a pool of credit card receivables �����������������������������������������������������������������1323
SECTION 31. MARKET DISCOUNT BONDS (§ 1278)���������������������������������������������������������������������������������������������������������������1324
.01 Revocation of § 1278(b) election �������������������������������������������������������������������������������������������������������������������������������������������1324
SECTION 32. SHORT-TERM OBLIGATIONS (§ 1281)���������������������������������������������������������������������������������������������������������������1324
.01 Interest income on short-term obligations�������������������������������������������������������������������������������������������������������������������������������1324
.02 Stated interest on short-term loans of cash method banks �����������������������������������������������������������������������������������������������������1325
EFFECTIVE DATE�������������������������������������������������������������������������������������������������������������������������������������������������������������������������1325
EFFECT ON OTHER DOCUMENTS���������������������������������������������������������������������������������������������������������������������������������������������1326
PAPERWORK REDUCTION ACT�������������������������������������������������������������������������������������������������������������������������������������������������1327
SIGNIFICANT CHANGES�������������������������������������������������������������������������������������������������������������������������������������������������������������1327
DRAFTING INFORMATION���������������������������������������������������������������������������������������������������������������������������������������������������������1331
LIST OF AUTOMATIC CHANGES CONTACT LIST�����������������������������������������������������������������������������������������������������������������1332

Bulletin No. 2023–28

1211

July 10, 2023

This revenue procedure provides the
List of Automatic Changes to which the
automatic change procedures in Rev.
Proc. 2015-13, 2015-5 I.R.B. 419, as clarified and modified by Rev. Proc. 2015-33,
2015-24 I.R.B. 1067, and as modified by
Rev. Proc. 2021-34, 2021-35 I.R.B. 337,
by Rev. Proc. 2021-26, 2021-22 I.R.B.
1163, by Rev. Proc. 2017-59, 2017-48
I.R.B. 543, and by section 17.02(b) and
(c) of Rev. Proc. 2016-1, 2016-1 I.R.B.
1, apply. The definitions in section 3 of
Rev. Proc. 2015-13 apply to this revenue
procedure.
LIST OF AUTOMATIC CHANGES
SECTION 1. GROSS INCOME (§ 61)
.01 Up-front Payments for Network
Upgrades received by Utilities.
(1) Description of change. This change
applies to a Utility that wants to change
its method of accounting for Up-front
Payments to the safe harbor method
described in Rev. Proc. 2005-35, 2005-2
C.B. 76. In general, this change applies to
a Utility that receives an Up-front Payment
from a Generator to finance Network
Upgrades to the Utility’s Transmission
System. For federal income tax purposes,
if an Up-front Payment is made pursuant
to an Interconnection Agreement that satisfies all of the conditions of section 5.02
of Rev. Proc. 2005-35, a Utility may treat
that Up-front Payment as not being taxable income under § 61 when received
(the safe harbor method). In addition, a
Utility that uses the safe harbor method is
not entitled to any deduction for its reimbursements of the Up-front Payment. To
the extent that Federal Energy Regulatory
Commission (FERC) interest is deductible, it must be properly allocated to the
periods in which it accrues. A Utility
using the safe harbor method must comply with all other applicable provisions of
Rev. Proc. 2005-35. See Rev. Proc. 200535 for the definitions of certain terms for
purposes of this change.
(2) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
1.01 is “91.”
(3) Contact information. For further
information regarding a change under this

July 10, 2023

section, contact William E. Blanchard at
(202) 317-3900 (not a toll-free number).
SECTION 2. COMMODITY CREDIT
LOANS (§ 77)
.01 Treating amounts received as loans.
(1) Description of change. This change
applies to a taxpayer that wants to change
its method of accounting for loans received
from the Commodity Credit Corporation
from including the loan amount in gross
income for the taxable year in which
each loan is received to treating each loan
amount as a loan.
(2) Certain eligibility rule inapplicable. The eligibility rule in section 5.01(1)
(f) of Rev. Proc. 2015-13, 2015-5 I.R.B.
419, does not apply to this change.
(3) Manner of making change. This
change is made on a cut-off basis and
applies only to loans received from the
Commodity Credit Corporation on or
after the beginning of the year of change.
Accordingly, a § 481(a) adjustment is neither permitted nor required.
(4) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
2.01 is “1.”
(5) Contact information. For further
information regarding a change under this
section, contact Michael Finn at (202)
317-4718 (not a toll-free number).
SECTION 3. TRADE OR BUSINESS
EXPENSES (§ 162)
.01 Advances made by a lawyer on
behalf of clients.
(1) Description of change. This change
applies to a lawyer who advances money
to pay for costs of litigation or for other
expenses on behalf of clients, and who
wants to change the method of accounting for such advances from treating
them as deductible business expenses
to treating them as loans to clients. This
change applies to cases handled either
on a non-contingent or a contingent
fee basis. See Pelton & Gunther, P.C.
v. Commissioner, T.C. Memo. 1999339 (non-contingent fee); Canelo v.
Commissioner, 53 T.C. 217 (1969), aff’d
per curiam, 447 F.2d 484 (9th Cir. 1971)
(contingent fee).

1212

(2) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
3.01 is “2.”
(3) Contact information. For further
information regarding a change under this
section, contact Alicia Lee-Won at (202)
317-7003 (not a toll-free number).
.02 ISO 9000 costs.
(1) Description of change. This change
applies to a taxpayer that wants to change
its method of accounting for costs incurred
to obtain, maintain, and renew ISO 9000
certification to conform with Rev. Rul.
2000-4, 2000-1 C.B. 331, as modified by
this revenue procedure.
(2) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
3.02 is “3.”
(3) Contact information. For further
information regarding a change under this
section, contact Alicia Lee-Won at (202)
317-7003 (not a toll-free number).
.03 Restaurant or tavern smallwares
packages.
(1) Description of change. This change
applies to a taxpayer engaged in the trade
or business of operating a restaurant or
tavern (within the meaning of section
4.01 of Rev. Proc. 2002-12, 2002-1 C.B.
374) that wants to change its method of
accounting for the costs of smallwares to
the smallwares method described in Rev.
Proc. 2002-12, as modified by this revenue procedure.
(2) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
3.03 is “4.”
(3) Contact information. For further
information regarding a change under this
section, contact Renay France at (202)
317-7003 (not a toll-free number).
.04 Timber grower fertilization costs.
(1) Description of change. This change
applies to a timber grower that wants to
change its method of accounting to treat
post-establishment fertilization costs of
an established timber stand as ordinary
and necessary business expenses deductible under § 162. See Rev. Rul. 2004-62,
2004-1 C.B. 1072, as modified by this revenue procedure.

Bulletin No. 2023–28

(2) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
3.04 is “86.”
(3) Contact information. For further
information regarding a change under this
section, contact Maria Castillo Valle at
(202) 317-7003 (not a toll-free number).
.05 Materials and supplies. See section
11.08 of this revenue procedure.
.06 Repair and maintenance costs. See
section 11.08 of this revenue procedure.
.07 Wireline network asset maintenance allowance and units of property
methods of accounting under Rev. Proc.
2011-27.
(1) Description of change. This change
applies to a wireline telecommunications
carrier that is within the scope of Rev.
Proc. 2011-27, 2011-18 I.R.B. 740, and
wants to change its treatment of wireline
network asset expenditures to use either
(a) the wireline network asset maintenance allowance method of accounting,
or (b) all or some of the units of property
described in Rev. Proc. 2011-27.
(2) Section 481(a) adjustment. In general, a change to the wireline network
asset maintenance allowance method of
accounting or to use all or some of the units
of property specified in Rev. Proc. 201127 requires an adjustment under § 481(a).
The § 481(a) adjustment shall not include
any amount attributable to property for
which the taxpayer elected to apply the
repair allowance under § 1.167(a)-11(d)
(2).
(3) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
3.07 is “158.”
(4) Contact information. For further
information regarding a change under this
section, contact Ian Heminsley at (202)
317-5100 (not a toll-free number).
.08 Wireless network asset maintenance allowance and units of property
methods of accounting under Rev. Proc.
2011-28.
(1) Description of change. This change
applies to a wireless telecommunications
carrier that is within the scope of Rev.
Proc. 2011-28, 2011-18 I.R.B. 743, and
wants to change its treatment of wireless
network asset expenditures to use either

Bulletin No. 2023–28

(a) the wireless network asset maintenance allowance method of accounting,
or (b) all or some of the units of property
described in Rev. Proc. 2011-28.
(2) Section 481(a) adjustment. In general, a change to the wireless network
asset maintenance allowance method of
accounting or to use all or some of the units
of property specified in Rev. Proc. 201128 requires an adjustment under § 481(a).
The § 481(a) adjustment does not include
any amount attributable to property for
which the taxpayer elected to apply the
repair allowance under § 1.167(a)-11(d)
(2).
(3) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
3.08 is “159.”
(4) Contact information. For further
information regarding a change under this
section, contact Samuel Terhaar at (202)
317-5100 (not a toll-free number).
.09 Method of accounting under Rev.
Proc. 2011-43 for taxpayers in the business of transporting, delivering, or selling
electricity.
(1) Description of change. This change
applies to a taxpayer that is within the
scope of Rev. Proc. 2011-43, 2011-37
I.R.B. 326, and wants to change its treatment of transmission and distribution
property expenditures to use the method
of accounting described in Rev. Proc.
2011-43.
(2) Section 481(a) adjustment. A taxpayer must take the entire net § 481(a)
adjustment into account (whether positive
or negative) in computing taxable income
for the year of change. The § 481(a)
adjustment does not include any amount
attributable to property for which the taxpayer elected to apply the repair allowance under § 1.167(a)-11(d)(2) for any
taxable year in which the election was
made. For guidance regarding permissible § 481(a) calculation methodologies,
see section 7.02 and Appendix A of Rev.
Proc. 2011-43.
(3) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
3.09 is “160.”
(4) Contact information. For further
information regarding a change under this

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section, contact Nathaniel Kupferman at
(202) 317-5100 (not a toll-free number).
.10 Method of accounting under Rev.
Proc. 2013-24 for taxpayers in the business
of generating steam or electric power.
(1) Description of change. This change
applies to a taxpayer that is within the
scope of Rev. Proc. 2013-24, 2013-22
I.R.B. 1142, and wants to change its treatment of generation property expenditures
to use all or some of the unit of property
definitions and the corresponding major
component definitions described in Rev.
Proc. 2013-24.
(2) Section 481(a) adjustment.
(a) A taxpayer must take the entire net
§ 481(a) adjustment into account (whether
positive or negative) in computing taxable
income for the year of change. For guidance regarding the use of extrapolation in
computing a § 481(a) adjustment, see sections 6.02 and Appendix B of Rev. Proc.
2013-24.
(b) A taxpayer changing to this method
of accounting must not include in the
§ 481(a) adjustment any amount attributable to property for which the taxpayer
elected to apply the repair allowance
under § 1.167(a)–11(d)(2) for any taxable
year in which the repair allowance election was made.
(3) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
3.10 is “182.”
(4) Contact information. For further
information regarding a change under
this section, contact Morgan Lawrence at
(202) 317-7011 (not a toll-free number).
.11 Cable network asset capitalization
methods of accounting under Rev. Proc.
2015-12.
(1) Description of change. This change
applies to a cable system operator that is
within the scope of Rev. Proc. 2015-12,
2015-2 I.R.B. 266, and wants to make
one or more of the following changes in
method of accounting:
(a) Change its treatment of cable network asset expenditures to the cable
network asset maintenance allowance
method of accounting provided in section
5 of Rev. Proc. 2015-12;
(b) Change to use any of the unit of
property definitions provided in section 6
of Rev. Proc. 2015-12;

July 10, 2023

(c) Change to use the specific identification method for installations and
customer drop costs described in section
7.01(1) of Rev. Proc. 2015-12;
(d) Change to use the safe harbor
allocation method for installations and
customer drop costs described in section
7.01(2) of Rev. Proc. 2015-12; or
(e) Change to deduct the labor costs
associated with installing customer premises equipment under section 7.02 of Rev.
Proc. 2015-12.
(2) Concurrent automatic change. A
taxpayer that wants to make one or more
changes in method of accounting pursuant to
this section 3.11 and a change to a UNICAP
method under section 12 of this revenue procedure for the same year of change should
file a single Form 3115 that includes all of
these changes and must enter the designated
automatic accounting method change numbers for all of these changes on the appropriate line on the Form 3115. See section
6.03(1)(b) of Rev. Proc. 2015-13 for information on making concurrent changes.
(3) Section 481(a) adjustment.
(a) In general, a change to one or more
of the changes in method of accounting
described in section 3.11(1) of this revenue procedure requires an adjustment
under § 481(a). The § 481(a) adjustment
shall not include any amount attributable
to property for which the taxpayer elected
to apply the repair allowance under
§ 1.167(a)-11(d)(2).
(b) Itemized listing on Form 3115. The
taxpayer must include on Form 3115 (Rev.
December 2022), Part IV, line 26, the total
§ 481(a) adjustment for all changes in
methods of accounting being made. If the
taxpayer is making more than one change
in method of accounting under Rev. Proc.
2015-12, the taxpayer must include on an
attachment to Form 3115:
(i) the information required by Part
IV, line 26 for each change in method of
accounting (including the amount of the
§ 481(a) adjustment for each change in
method of accounting, which includes the
portion of the § 481(a) adjustment attributable to UNICAP);
(ii) the information required by Part
II, line 14 of Form 3115 that is associated
with each change; and
(iii) the citation to the paragraph of
Rev. Proc. 2015-12 that provides for each
proposed method of accounting.

July 10, 2023

(4) Designated automatic accounting method change number. The designated automatic accounting method
change number for a change to a method
of accounting provided in section 5 or 6
of Rev. Proc. 2015-12 is “208.” The designated automatic accounting method
change number for a change to a method
of accounting provided in section 7 of
Rev. Proc. 2015-12 is “209.”
(5) Contact information. For further
information regarding a change under this
section, contact Elizabeth Boone at (202)
317-5100 (not a toll-free number).
.12 Natural gas transmission and distribution property method of accounting
under Rev. Proc. 2023-15.
(1) Description of change.
(a) Applicability. This change applies to
a taxpayer that is within the scope of Rev.
Proc. 2023-15 and wants to change its treatment of natural gas transmission and distribution property costs to use the natural
gas transmission and distribution property
safe harbor method of accounting (NGSH
Method) described in Rev. Proc. 2023-15.
Specifically, this change applies to a taxpayer that wants to change to “the safe harbor method for linear property” or “the safe
harbor method for non-linear property” and
other applicable rules in accordance with
Rev. Proc. 2023-15, including the making of a late general asset account election
as required under section 5.08(2) of Rev.
Proc. 2023-15. This change also applies to
a taxpayer that previously changed to the
safe harbor method for linear property and
wants to change to the safe harbor method
for non-linear property for a subsequent
taxable year.
(b) Inapplicability. This change does
not apply to the making of a late general
asset account election other than in accordance with section 5.08(2) of Rev. Proc.
2023-15.
(2) Certain eligibility rules temporarily
inapplicable.
(a) In general. The eligibility rules in
section 5.01(1)(d) and (f) of Rev. Proc.
2015-13 do not apply to a taxpayer that
changes to the NGSH Method provided
in Rev. Proc. 2015-13 for its first, second,
or third taxable year ending after May 1,
2023.
(b) Concurrent automatic change.
(i) If a taxpayer makes both a change
under this section 3.12 and a change under

1214

section 6.12(3)(b) and/or section 6.15 of
this revenue procedure for linear property
and/or non-linear property for its first,
second, or third taxable year ending after
May 1, 2023, on a single Form 3115 for
the same asset for the same year of change
in accordance with section 3.12(6)(b)
of this revenue procedure, the eligibility
rules in section 5.01(1)(d) and (f) of Rev.
Proc. 2015-13 do not apply to the taxpayer
for these changes.
(ii) If a taxpayer makes both a change
under this section 3.12 and a change under
section 11.08, 12.01, 12.02, 12.08, and/or
12.12 of this revenue procedure, as applicable, for its linear property or non-linear
property costs in its first, second, or third
taxable year ending after May 1, 2023, on
a single Form 3115 for the same year of
change in accordance with section 3.12(6)
(c) of this revenue procedure, the eligibility rules in section 5.01(1)(d) and (f) of
Rev. Proc. 2015-13 do not apply to the
taxpayer for these changes.
(3) Manner of making change.
(a) Late general asset account election.
(i) The late general asset account election change described in section 5.08(2)
of Rev. Proc. 2023-15 is made using a
modified cut-off method under which
the unadjusted depreciable basis and
the depreciation reserve of the asset as
of the beginning of the year of change
are accounted for using the proposed
method of accounting. The late general
asset account election change requires
each general asset account to include
a beginning balance for both the unadjusted depreciable basis and the depreciation reserve. The beginning balance for
the unadjusted depreciable basis of each
general asset account is equal to the sum
of the unadjusted depreciable bases as of
the beginning of the year of change for
all assets included in that general asset
account. The beginning balance of the
depreciation reserve of each general asset
account is equal to the sum of the greater
of the depreciation allowed or allowable
as of the beginning of the year of change
for all assets included in that general asset
account.
(ii) For the late general asset account
election change described in section
5.08(2) of Rev. Proc. 2023-15, the taxpayer must attach to its Form 3115 a statement providing that the taxpayer agrees

Bulletin No. 2023–28

to the following additional terms and
conditions:
(A) The taxpayer consents to, and
agrees to apply, all the provisions of
§ 1.168(i)-1 to the assets that are subject
to the election specified in section 5.08(2)
of Rev. Proc. 2023-15; and
(B)
Except
as
provided
in
§ 1.168(i)-1(c)(1)(ii)(A), (e)(3), (g), or
(h), the election made by the taxpayer
under section 5.08(2) of Rev. Proc. 202315 is irrevocable and will be binding
on the taxpayer for computing taxable
income for the year of change and for all
subsequent taxable years with respect to
the assets that are subject to this election.
(b) Cut-off basis for certain changes.
Except for changes to make a late general
asset account election described in section
3.12(3)(a) of this revenue procedure, a
change to the NGSH Method described in
Rev. Proc. 2023-15 is made on a cut-off
basis and applies only to natural gas transmission and distribution property costs
paid or incurred beginning in or after the
year of change if(i) Sections 5.08(2)(a)(ii) and 6.04 of
Rev. Proc. 2023-15 apply (the taxpayer
changes to the NGSH Method described
in Rev. Proc. 2023-15 for the first, second,
or third taxable year ending after May 1,
2023, on a cut-off basis); or
(ii) Section 5.08(2)(a)(iii) of Rev. Proc.
2023-15 applies (the taxpayer changes to
the NGSH Method described in Rev. Proc.
2023-15 for the fourth taxable year ending
after May 1, 2023, or for any subsequent
taxable year).
(c) Public Utility Property. If the taxpayer’s change to the NGSH Method
described in Rev. Proc. 2023-15 applies
to any asset that is public utility property within the meaning of § 168(i)(10),
the taxpayer must attach a statement to
its Form 3115 agreeing to the following
additional terms and conditions:
(i) A normalization method of accounting (within the meaning of § 168(i)(9))
will be used for the public utility property
subject to the Form 3115;
(ii) As of the beginning of the year
of change, the taxpayer will adjust its
deferred tax reserve account or similar
account in the taxpayer’s regulatory books
of account by the amount of the deferral
of federal income tax liability associated
with the § 481(a) adjustment applicable

Bulletin No. 2023–28

to the public utility property subject to the
Form 3115; and
(iii) Within 30 calendar days of filing
the federal income tax return for the year
of change, the taxpayer will provide a
copy of the completed Form 3115 to any
regulatory body having jurisdiction over
the public utility property subject to the
Form 3115.
(4) Section 481(a) adjustment.
(a) In general. Except as provided in
section 3.12(3)(b) of this revenue procedure, a taxpayer changing its methods of
accounting under this section 3.12 must
take the entire net § 481(a) adjustment
into account, whether positive or negative, in computing taxable income for the
year of change in the manner provided in
section 7.03 of Rev. Proc. 2015-13. The
entire net § 481(a) adjustment includes all
aspects of the NGSH Method described in
Rev. Proc. 2023-15, including a change
to the methods of accounting permitted
under § 1.168(i)-1 pursuant to section
5.08(2) of Rev. Proc. 2023-15. However,
a § 481(a) adjustment is neither required
nor permitted for the late general asset
account election described in section
5.08(2) of Rev. Proc. 2023-15. Further,
a § 481(a) adjustment is neither required
nor permitted if the taxpayer chooses to
change to the NGSH Method on a cutoff basis under section 6.04 of Rev. Proc.
2023-15 or if the taxpayer changes to this
method during the time described in section 5.08(2)(a)(iii) of Rev. Proc. 2023-15.
(b) Repair allowance property. A taxpayer changing its method of accounting
under this section 3.12 must not include
in the § 481(a) adjustment any amount
attributable to property for which the taxpayer elected to apply the repair allowance under § 1.167(a)-11(d)(2) for any
taxable year in which the repair allowance
election was made.
(c) Property subject to the election
to capitalize repair and maintenance
costs. A taxpayer changing its method of
accounting under this section 3.12 must
not include in the § 481(a) adjustment
any amount attributable to property for
which the taxpayer elected to capitalize repair and maintenance costs under
§ 1.263(a)-3(n) for any taxable year in
which this election was made.
(d) Statistical sampling. A taxpayer
changing to the NGSH Method under this

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section 3.12 may use statistical sampling
in determining the § 481(a) adjustment
amount attributable to any single taxable
year by following the guidance provided
in Rev. Proc. 2011-42, 2011-37 I.R.B.
318.
(e) Extrapolation. A taxpayer changing
to the NGSH Method under this section
3.12 may use the extrapolation methodology provided in Appendix B to Rev. Proc.
2023-15 (Appendix B) in determining the
§ 481(a) adjustment amount if the taxpayer is within the scope of section 1.02
of Appendix B. Extrapolation methodologies not permitted in Appendix B are not
permitted under the NGSH Method.
(5) No audit protection for certain taxpayers. If a taxpayer chooses to change
to the NGSH Method described in Rev.
Proc. 2023-15 on a cut-off basis as permitted under section 6.04 of Rev. Proc.
2023-15 or is required to change on a cutoff basis under section 5.08(3)(b)(i) of
Rev. Proc. 2023-15, the taxpayer does not
receive audit protection under section 8.01
of Rev. Proc. 2015-13 in connection with
this change.
(6) Concurrent automatic changes.
(a) A taxpayer making changes under
this section 3.12 for more than one asset
for the same year of change must file a single Form 3115 for all such assets. The single Form 3115 must provide a single net
§ 481(a) adjustment for all such changes.
(b) A taxpayer making changes under
this section 3.12 and changes under section 6.12(3)(b) and/or section 6.15 of this
revenue procedure for linear property or
non-linear property costs for the same
year of change must file a single Form
3115 for all changes and must enter the
designated automatic accounting method
change numbers for all changes on the
appropriate line on the Form 3115. See
section 6.03(1)(b) of Rev. Proc. 2015-13
for information on making concurrent
changes.
(c) A taxpayer making changes under
this section 3.12 and also making a coordinating change to its linear property or
non-linear property costs under section
11.08, 12.01, 12.02, 12.08, and/or 12.12
of this revenue procedure, as applicable,
must file a single Form 3115 for the same
year of change for all these changes, provided that the taxpayer is not prohibited
from filing an automatic change under

July 10, 2023

the eligibility rules under section 5 of
Rev. Proc. 2015-13. For changes required
to be filed on a single Form 3115 under
this section, the taxpayer must enter the
designated automatic accounting method
change numbers for all changes on the
appropriate line on the Form 3115. See
section 6.03(1)(b) of Rev. Proc. 2015-13
for information on making concurrent
changes.
(d) A taxpayer that changes to a method
of accounting under this section 3.12 for
taxable years ending after the third taxable year ending after May 1, 2023 and
is also required to change its method of
accounting to properly capitalize its linear property or non-linear property costs
under § 263(a) and/or § 263A under section 5.08(3)(b)(ii) of Rev. Proc. 2023-15,
must file a single Form 3115 for the same
year of change for all these changes, provided that the taxpayer is not prohibited
from filing an automatic change under the
eligibility rules set out in section 5 of Rev.
Proc. 2015-13, 2015-5 I.R.B. 419. For
changes required to be filed on a single
Form 3115 under this paragraph, the taxpayer must enter the designated automatic
accounting method change numbers for
all changes on the appropriate line on the
Form 3115. See section 6.03(1)(b) of Rev.
Proc. 2015-13 for information on making
concurrent changes.
(7) Examples. The following examples
illustrate this section 3.12. In each example, it is assumed that the taxpayer (a) is
a C corporation, on an accrual method of
accounting and using a calendar taxable
year, (b) is within the scope of Rev. Proc.
2023-15, (c) placed in service natural gas
transmission property or distribution property that is described in section 4 of Rev.
Proc. 2023-15 and is MACRS property,
(d) did not make a general asset account
election for any natural gas transmission
property or distribution property placed
in service by the taxpayer in any taxable
year before the first taxable year that the
taxpayer uses the NGSH Method, (e) is
changing its methods of accounting for
both linear property and non-linear property under the NGSH Method for the same
taxable year, and (f) is not changing to the
NGSH Method on a cut-off basis under
section 6.04 of Rev. Proc. 2023-15. Unless
otherwise stated, it also is assumed that (a)
the cost of the replacements before Year

July 10, 2023

1 were not capitalized under § 263(a), (b)
the cost of the replacements before Year 1
would not have been capitalized if the taxpayer used the NGSH Method provided
under sections 5.02, 5.03, 5.04, 5.06, and
5.07 of Rev. Proc. 2023-15 for such prior
taxable years, and (c) the taxpayer’s natural gas transmission and distribution property expenditures are not per se capital
expenditures under section 5.05(1)(a)-(f),
(i), or (j) of Rev. Proc. 2023-15. Further, it
is assumed that § 1.168(i)-1(e)(3) (special
rules for certain dispositions of assets in
general asset accounts) does not apply for
the first taxable year that the taxpayer uses
the NGSH Method. Moreover, for purposes of these examples, “Year 1” refers
to the taxpayer’s first taxable year ending
after May 1, 2023, “Year 2” refers to the
taxpayer’s second taxable year ending
after May 1, 2023, and “Year 4” refers to
the taxpayer’s fourth taxable year ending
after May 1, 2023.

(a) Example 1. (i) X is a local natural gas distribution company. Before Year 1, X owned and placed
in service natural gas distribution property at a cost
of $120 million before any dispositions or additions.
Before Year 1, X replaced parts of such property
that had an original cost of $10 million and incurred
$12 million for the cost of such replacements. On its
Federal income tax returns before Year 1, X recognized losses upon the dispositions of that $10 million
of property, capitalized $12 million for the cost of
the replacements of that property under § 263(a), and
deducted depreciation of $800,000 on such $12 million. X files a Form 3115 with its Federal income tax
return for Year 1 to change its methods of accounting to use the NGSH Method described in Rev. Proc.
2023-15.
(ii) Because Year 1 is X’s first taxable year ending after May 1, 2023, section 5.08(2)(a)(i) and (3)
(a) of Rev. Proc. 2023-15 apply. Pursuant to section
5.08(3)(a) of Rev. Proc. 2023-15, the per se capital
expenditure rules in section 5.05(1)(g) and (h) of
Rev. Proc. 2023-15 do not apply to the replacement
cost of $12 million that X capitalized under § 263(a)
on its Federal income tax returns before Year 1.
Accordingly, this $12 million cost of the replacements is not treated as a per se capital expenditure
under the NGSH Method. Therefore, at the beginning of Year 1, X is treated under Rev. Proc. 202315 as owning natural gas distribution property at a
cost of $110 million ($120 million - $10 million).
Under section 5.08(2)(a)(i) of Rev. Proc. 2023-15, X
must make a late general asset account election on its
Form 3115 to include in general asset accounts all of
the $110 million of natural gas distribution property
that X owns at the beginning of Year 1. These general asset accounts also must include the total depreciation allowed or allowable before the beginning of
Year 1 for such property as the beginning balances
of the depreciation reserves. The late general asset
account election change is made on a modified cutoff method and, therefore, a § 481(a) adjustment is

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neither required nor permitted for the late general
asset account election change.
(iii) On its Form 3115 to change to the NGSH
Method provided under Rev. Proc. 2023-15, the
net negative § 481(a) adjustment for this change is
$11,200,000 (deduction of $12 million for the cost
of the replacements before Year 1 less depreciation
of $800,000 for such replacement assets before Year
1) and is deducted in computing X’s taxable income
for Year 1.
(b) Example 2. (i) The facts are the same as in
Example 1, except that X files a Form 3115 with
its Federal income tax return for Year 2 to change
its method of accounting to use the NGSH Method
described in Rev. Proc. 2023-15, and, before Year
2, X deducted depreciation of $1,000,000 on the
replacement cost of $12 million.
(ii) Because X filed its method change in Year
2, the special rule under section 5.08(3)(a) of Rev.
Proc. 2023-15 does not apply to the replacement
cost of $12 million that X capitalized under § 263(a)
on its Federal income tax returns before Year 1.
Accordingly, section 5.05(1)(g) and (h) of Rev. Proc.
2023-15 apply to the replacement cost of $12 million
that X capitalized on its Federal income tax returns
before Year 2. The total cost of $12 million for this
replacement is a per se capital expenditure, and must
be capitalized, under the NGSH Method.
(iii) At the beginning of Year 2, X is treated
under the NGSH Method as owning natural gas distribution property at a cost of $122 million ($120
million - $10 million + $12 million). Under section
5.08(2)(a)(i) of Rev. Proc. 2023-15, X must make a
late general asset account election on its Form 3115
to include in general asset accounts all of the $122
million of natural gas distribution property that
X owns at the beginning of Year 2. These general
asset accounts also must include the total depreciation allowed or allowable before the beginning of
Year 2 for such property as the beginning balances
of the depreciation reserves. The late general asset
account election change is made on a modified cutoff method and, therefore, a § 481(a) adjustment is
neither required nor permitted for the late general
asset account election.
(iv) On its Form 3115 to change to the NGSH
Method under Rev. Proc. 2023-15, the net § 481(a)
adjustment for this change is zero. Under its present
method of accounting and under the NGSH Method
(proposed method of accounting), X properly capitalized the $12 million for the cost of the replacements
before Year 1 and claimed depreciation for such
replacement assets before Year 2.
(c) Example 3. (i) Y is a local natural gas distribution company. Before Year 1, Y owned and placed
in service natural gas distribution property at a cost
of $120 million before any dispositions or additions.
Before Year 1, Y replaced parts of such property
that had an original cost of $10 million and incurred
$12 million for the cost of such replacements. On its
Federal income tax returns before Year 1, Y recognized losses upon the dispositions of that $10 million
of property, and deducted $12 million for the cost
of the replacements of such property under § 162(a).
During Year 1, Y replaced a part of the natural gas
distribution property that had an original cost of $2
million and incurred $3 million for the cost of such
replacements. If Y had capitalized the $15 million for

Bulletin No. 2023–28

the cost of the replacements, the total depreciation
allowed or allowable for these assets would have
been $1 million before Year 2. On its Federal income
tax return for Year 1, Y recognized a loss upon the
disposition of that $2 million of property, and
deducted $3 million for the cost of the replacements
under § 162(a). Y files a Form 3115 with its Federal
income tax return for Year 2 to change its method
of accounting to use the NGSH Method described in
Rev. Proc. 2013-15.
(ii) Because Y filed its method change for Year
2, section 5.08(2)(a)(i) of Rev. Proc. 2023-15 applies
to this change. However, the special rule under section 5.08(3)(a) of Rev. Proc. 2023-15 would apply
only if Y had filed its method change for Year 1.
Accordingly, section 5.05(1)(g) and (h) of Rev. Proc.
2023-15 apply to the replacement cost of $12 million
that Y deducted under § 162(a) on its Federal income
tax returns before Year 1, and to the replacement cost
of $3 million that Y deducted under § 162(a) on its
Federal income tax return for Year 1. Therefore, the
total cost of $15 million for these replacements is a
per se capital expenditure, and must be capitalized,
under the NGSH Method.
(iii) At the beginning of Year 2, Y is treated under
Rev. Proc. 2023-15 as owning natural gas distribution property at a cost of $123 million ($120 million $10 million + $12 million - $2 million + $3 million).
Under section 5.08(2)(a)(i) of Rev. Proc. 2023-15, Y
must make a late general asset account election on its
Form 3115 to include in general asset accounts all of
the $123 million of natural gas distribution property
that Y owns at the beginning of Year 2. These general
asset accounts also must include the total depreciation allowed or allowable before the beginning of
Year 2 for such property as the beginning balances
of the depreciation reserves. The late general asset
account election change is made on a modified cutoff method and, therefore, a § 481(a) adjustment is
neither required nor permitted for the late general
asset account election.
(iv) On its Form 3115 to change to the NGSH
Method of Rev. Proc. 2023-15, the net positive
§ 481(a) adjustment for this change is $14 million
($15 million for the cost of the replacements before
Year 2 less depreciation allowed or allowable of $1
million for such replacement assets before Year 2)
and is taken into account in computing Y’s income
in the manner provided in section 3.12(4)(a) of this
revenue procedure.
(d) Example 4. (i) Z is a local natural gas distribution company. Before Year 4, Z owned and placed
in service natural gas distribution property at a cost
of $150 million before any dispositions or additions.
Before Year 4, Z replaced parts of such property
that had an original cost of $30 million and incurred
$45 million for the cost of such replacements. On its
Federal income tax returns before Year 4, Z recognized losses upon the dispositions of that $30 million of property, capitalized $45 million for the cost
of the replacements under § 263(a), and deducted
depreciation of $15 million on such $45 million. Z
files a Form 3115 with its Federal income tax return
for Year 4 to change its method of accounting to use
the NGSH Method described in Rev. Proc. 2013-15.
Assume Z is eligible to file Form 3115 for Year 4
under the automatic change procedures in Rev. Proc.
2015-13.

Bulletin No. 2023–28

(ii) At the beginning of Year 4, Z owns natural
gas distribution property at a cost of $165 million
($150 million - $30 million + $45 million). Because
Year 4 is Z’s fourth taxable year ending after May 1,
2023, sections 5.08(2)(a)(iii) and 5.08(3)(b) of Rev.
Proc. 2023-15 apply. Accordingly, under section
5.08(2)(a)(iii) of Rev. Proc. 2023-15, Z must make
a late general asset account election on its Form
3115 to include in general asset accounts all of the
$165 million of natural gas distribution property that
Z owns at the beginning of Year 4. These general
asset accounts also must include the total depreciation allowed or allowable before the beginning of
Year 4 for such property as the beginning balances
of the depreciation reserves. The late general asset
account election change is made using a modified
cut-off method and, therefore, a § 481(a) adjustment
is neither permitted nor required for the late general
asset account election.
(iii) Because sections 5.08(2)(a)(iii) and 5.08(3)
(b) of Rev. Proc. 2023-15 apply, Z’s change to the
NGSH Method described in Rev. Proc. 2023-15,
applies only to natural gas transmission and distribution property expenditures paid or incurred by Z
beginning in Year 4 and is made on a cut-off basis.
Therefore, a § 481(a) adjustment is neither required
nor permitted for the change to the NGSH Method
described in Rev. Proc. 2023-15.
(e) Example 5. (i) The facts are the same as
in Example 4, except that, on its Federal income
tax returns before Year 4, Z improperly deducted
$45 million for the cost of the replacements under
§ 162(a). Such $45 million of replacement costs
should have been capitalized under § 263(a). If Z
had capitalized the $45 million for the cost of the
replacements, the total depreciation allowed or
allowable for such assets would have been $15 million before Year 4.
(ii) Because Year 4 is Z’s fourth taxable year
ending after May 1, 2023, sections 5.08(2)(a)(iii) and
5.08(3)(b) of Rev. Proc. 2023-15 apply. Pursuant to
section 5.08(3)(b) of Rev. Proc. 2023-15, Z must also
change its method of accounting to capitalize under
§ 263(a) the $45 million for the cost of the replacements incurred before Year 4. The net positive
§ 481(a) adjustment for this coordinating change is
$30 million ($45 million for the cost of the replacements before Year 4 less depreciation allowed or
allowable of $15 million for such replacement assets
before Year 4). Z takes this net positive § 481(a)
adjustment of $30 million into account in computing
Z’s taxable income in the manner provided in section
3.12(4)(a) of this revenue procedure.
(iii) Z owns natural gas distribution property at
a cost of $165 million ($150 million - $30 million +
$45 million) at the beginning of Year 4. Accordingly,
Z must make a late general asset account election on
its Form 3115 to include in general asset accounts
all of the $165 million of natural gas distribution
property that Z owns at the beginning of Year 4.
These general asset accounts also must include the
total depreciation allowed or allowable before the
beginning of Year 4 for such property as the beginning balances of the depreciation reserves. The late
general asset account election change is made using
a modified cut-off method and, therefore, a § 481(a)
adjustment is neither permitted nor required for the
late general asset account election.

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(iv) Because sections 5.08(2)(a)(iii) and 5.08(3)
(b) of Rev. Proc. 2023-15 apply, Z’s change to
the NGSH Method provided under sections 5.02,
5.03, 5.04, 5.06, and 5.07 of Rev. Proc. 2023-15,
applies only to natural gas transmission and distribution property expenditures paid or incurred by Z
beginning in Year 4 and is made on a cut-off basis.
Therefore, a § 481(a) adjustment is neither required
nor permitted for the change to the NGSH Method
described in Rev. Proc. 2023-15.
(v) Pursuant to section 3.12(6)(c) and section
5.08(3)(b) of Rev. Proc. 2023-15 the change to
capitalize the replacement costs of $45 million, the
late general asset account election change, and the
change to use the NGSH Method provided under
Rev. Proc. 2023-15 must be included on the same
Form 3115 filed by Z for Year 4.

(8) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change to the methods of
accounting under this section 3.12 is
“269.”
(9) Contact information. For further
information regarding a change under this
section, contact Hyowon Lee or Merrill
Feldstein at (202) 317-5100 (not a tollfree number).
SECTION 4. BAD DEBTS (§ 166)

.01 Change from reserve method to
specific charge-off method.
(1) Description of change. This change
applies to a taxpayer (other than a bank
as defined in § 585(a)(2)) that wants to
change its method of accounting for bad
debts from a reserve method (or other
improper method) to a specific charge-off
method that complies with § 166. For procedures applicable to banks, see § 585(c)
and the regulations thereunder and section
25 of this revenue procedure.
(2) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
4.01 is “5.”
(3) Contact information. For further
information regarding a change under this
section, contact Renay France at (202)
317-7003 (not a toll-free number).
.02 Conformity election by bank after
previous election automatically revoked.
(1) Description of change. This change
applies to a bank that wants to change
its method of accounting for bad debts
by making the conformity election under
§ 1.166‑2(d)(3)(iii)(C)(3).

July 10, 2023

(2) Applicability. This change
only applies to a bank (as defined in
§ 1.166‑2(d)(4)(i)) that:
(a) is subject to supervision by Federal
authorities, or by state authorities maintaining substantially equivalent standards;
(b) has previously adopted or elected
to change to the method of accounting for
bad debts described in § 1.166-2(d)(3);
(c) has had that previous election automatically revoked under § 1.166‑2(d)(3)
(iv)(C);
(d) meets the express determination
requirement of § 1.166‑2(d)(3)(iii)(D) for
the year of change; and
(e) now seeks the consent of the
Commissioner to make an election under
§ 1.166‑2(d)(3)(iii)(C)(3).
(3) Certain eligibility rule inapplicable. The eligibility rule in section 5.01(1)
(f) of Rev. Proc. 2015-13, 2015-5 I.R.B.
419, does not apply to this change.
(4) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
4.02 is “211.”
(5) Contact information. For further
information regarding a change under this
section, contact K. Scott Brown at (202)
317-6945 (not a toll-free number).
SECTION 5. INTEREST EXPENSE
(§163) AND AMORTIZABLE BOND
PREMIUM (§ 171)
.01 Revocation of § 171(c) election.
(1) Description of change. This change
applies to a taxpayer that wants to change its
method of accounting for amortizable bond
premium by revoking its § 171(c) election.
Under § 171(c), a taxpayer that holds certain taxable bonds may elect to amortize any
bond premium on the bonds in accordance
with regulations prescribed by the Secretary.
Sections 1.171-1 through 1.171-5 provide
rules relating to the amortization of bond
premium by a taxpayer. Section 1.171-4
provides the procedures to make a § 171(c)
election to amortize bond premium.
(2) Revocation of election. The revocation of a § 171(c) election applies to all
taxable bonds that are held by the taxpayer
on the first day of the first taxable year for
which the revocation is effective (year of
change), and to all taxable bonds that are
subsequently acquired by the taxpayer.

July 10, 2023

(3) Manner of making change. This
change is made using a cut-off basis and
applies only to taxable bonds held on or
after the beginning of the year of change.
Accordingly, a § 481(a) adjustment is neither permitted nor required.
Under the cut-off basis, for taxable
bonds held at the beginning of the year
of change, the taxpayer may not amortize any remaining bond premium on the
bonds. Because the cut-off basis is prescribed for this change, the basis of any
bond, adjusted for amounts previously
amortized during the period of the election, is not affected by the revocation.
(4) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
5.01 is “16.”
(5) Additional requirements. On a
statement attached to the Form 3115, the
taxpayer must provide:
(a) the reason(s) for revoking the election; and
(b) a description of the method by
which, and the date on which, the taxpayer made the § 171(c) election that is
proposed to be revoked.
(6) Audit protection. Any audit protection applicable to this change under section
8 of Rev. Proc. 2015-13, 2015-5 I.R.B.
419, does not preclude the Commissioner
from examining the method used by the
taxpayer to determine the amount of amortizable bond premium under § 171(b) for
a taxable year prior to the year of change.
(7) Contact information. For further
information regarding a change under this
section, contact William E. Blanchard at
(202) 317-3900 (not a toll-free number).
.02 Change to comply with § 163(e)(3).
(1) Description of change. This change
applies to a taxpayer that wants to change
its method or methods of accounting to
comply with the requirements of § 163(e)
(3), which defers certain deductions
attributable to original issue discount debt
instruments held by related foreign persons. Any portion of the original issue discount will not be allowable as a deduction
to the U.S. person issuer until paid.
(2) Accelerated § 481(a) adjustment
period in certain situations. In addition
to the circumstances set forth in section
7.03(4) of Rev. Proc. 2015-13, 2015-5
I.R.B. 419, the § 481 adjustment period

1218

provided in section 7.03 of Rev. Proc.
2015-13 will be accelerated for a U.S. person with a remaining balance of a § 481(a)
adjustment that arose by reason of a
change in method of accounting described
in this section 5.02 if a debt instrument
subject to the change is paid off, retired,
or significantly modified within the meaning of § 1.1001-3 prior to the end of the
§ 481(a) adjustment period. The portion
of the remaining § 481(a) adjustment
attributable to the debt instrument must
be taken into account in the taxable year
the debt instrument is paid off, retired, or
significantly modified within the meaning
of § 1.1001-3.
(3) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change under this section
5.02 is “212.”
(4) Contact information. For further
information regarding a change under
this section, contact Anisa Afshar at (202)
317-6934 (not a toll-free number).
SECTION 6. DEPRECIATION OR
AMORTIZATION (§ 56(a)(1), 167, 168,
197, 280F(a), or 1502, OR FORMER
§ 56(g)(4)(A), 168, 1400I, 1400L, or
1400N(d))
.01 Impermissible to permissible
method of accounting for depreciation or
amortization.
(1) Description of change.
(a) Applicability. This change applies
to a taxpayer that wants to change from an
impermissible to a permissible method of
accounting for depreciation or amortization (depreciation) for any item of depreciable or amortizable property under the
taxpayer’s present or proposed method of
accounting:
(i) for which the taxpayer used the
impermissible method of accounting in at
least two taxable years immediately preceding the year of change (but see section
6.01(1)(b) of this revenue procedure for
property placed in service in the taxable
year immediately preceding the year of
change);
(ii) for which the taxpayer is making
a change in method of accounting under
§ 1.446-1(e)(2)(ii)(d);
(iii) for which depreciation is determined under § 56(a)(1), § 56(g)(4)(A)

Bulletin No. 2023–28

(as in effect on the day before the date
of enactment of Public Law 115-97, 131
Stat. 2054 (Dec. 22, 2017), commonly
referred to as the Tax Cuts and Jobs Act
(TCJA)), § 167, § 168, § 197, § 1400I,
or § 1400L(c), under § 168 prior to its
amendment in 1986 (former § 168), or
under any additional first year depreciation deduction provision of the Code (for
example, § 168(k), § 168(l), § 1400L(b),
or § 1400N(d)); and
(iv) that is owned by the taxpayer at
the beginning of the year of change (but
see section 6.07 of this revenue procedure
for property disposed of before the year of
change).
(b) Taxpayer has not adopted a method
of accounting for the item of property. If a
taxpayer does not satisfy section 6.01(1)
(a)(i) of this revenue procedure for an item
of depreciable or amortizable property
because this item of property is placed in
service by the taxpayer in the taxable year
immediately preceding the year of change
(“1-year depreciable property”), the taxpayer may change from the impermissible
method of determining depreciation to the
permissible method of determining depreciation for the 1-year depreciable property
by filing a Form 3115 for this change,
provided the § 481(a) adjustment reported
on the Form 3115 includes the amount of
any adjustment that is attributable to all
property (including the 1-year depreciable property) subject to the Form 3115.
Alternatively, the taxpayer may change
from the impermissible method of determining depreciation to the permissible
method of determining depreciation for
a 1-year depreciable property by filing an
amended federal income tax return, or an
administrative adjustment request under
§ 6227 (AAR), as applicable, for the property’s placed-in-service year prior to the
date the taxpayer files its federal income
tax return for the taxable year succeeding
the placed-in-service year.
(c) Inapplicability. This change does
not apply to:
(i) any property to which § 1016(a)(3)
(regarding property held by a tax-exempt
organization) applies;
(ii) a taxpayer that is required under
§ 263A and the regulations thereunder to
capitalize the costs with respect to which
the taxpayer wants to change its method
of accounting under this section 6.01 if

Bulletin No. 2023–28

the taxpayer is not capitalizing these costs,
unless the taxpayer concurrently changes
its method to capitalize these costs in
conjunction with a change to a UNICAP
method under section 12.01, 12.02, 12.08,
or 12.12 of this revenue procedure (as
applicable);
(iii) any property for which a taxpayer
is making a change in depreciation under
§ 1.446-1(e)(2)(ii)(d)(2)(vi) or (vii);
(iv) any property subject to § 167(g)
regarding property depreciated under the
income forecast method;
(v) any § 1250 property that a taxpayer
is reclassifying to an asset class of Rev.
Proc. 87-56, 1987-2 C.B. 674 (as clarified and modified by Rev. Proc. 88-22,
1988-1 C.B. 785), or Rev. Proc. 83-35,
1983-1 C.B. 745, as appropriate, that does
not explicitly include § 1250 property (for
example, asset class 57.0, Distributive
Trades and Services);
(vi) any property for which a taxpayer is revoking a timely valid election,
or making a late election, under § 167,
§ 168, § 179, § 1400I, § 1400L(c), former
§ 168, § 13261(g)(2) or (3) of the Revenue
Reconciliation Act of 1993 (1993 Act),
1993-3 C.B. 1, 128 (relating to amortizable § 197 intangibles), or any additional
first year depreciation deduction provision of the Code (for example, § 168(k),
§ 168(l), § 1400L(b), or § 1400N(d)). A
taxpayer may request consent to revoke or
make the election by submitting a request
for a letter ruling under Rev. Proc. 2023-1,
2023-1 I.R.B. 1 (or successor). However,
if a taxpayer is revoking or making an
election under § 179, see § 179(c) and
§ 1.179-5. See § 1.446-1(e)(2)(ii)(d)(3)
(iii);
(vii) any property for which depreciation is determined under § 56(g)(4)(A)
(as in effect on the day before the date of
enactment of the TCJA) or § 167 (other
than under § 168, § 1400I, § 1400L(c),
former § 168, or any additional first year
depreciation deduction provision of the
Code (for example, § 168(k), § 168(l),
§ 1400L(b), or § 1400N(d))) and a taxpayer
is changing the useful life of the property.
A change in the useful life of property is
corrected by adjustments in the applicable
taxable year provided under § 1.446-1(e)
(2)(ii)(d)(5)(iv). However, this section
6.01(1)(c)(vii) does not apply if the taxpayer is changing to or from a useful life,

1219

recovery period, or amortization period
that is specifically assigned by the Code
(for example, § 167(f)(1), § 168(c)), the
regulations thereunder, or other guidance
published in the Internal Revenue Bulletin
and, therefore, this change is a change
in method of accounting (unless section
6.01(1)(c)(xv) of this revenue procedure
applies). See § 1.446-1(e)(2)(ii)(d)(3)(i);
(viii) any depreciable property for
which the use changes in the hands of the
same taxpayer. See § 1.446-1(e)(2)(ii)(d)
(3)(ii). But see sections 6.04 and 6.05 of
this revenue procedure for changing to
the methods of accounting provided in
§ 1.168(i)-1(c)(2)(ii)(I) or § 1.168(i)-1(h)
(2), and § 1.168(i)-4, respectively;
(ix) any property for which depreciation is determined in accordance
with § 1.167(a)-11 (regarding the Class
Life Asset Depreciation Range System
(ADR));
(x) any change in method of accounting involving a change from deducting the
cost or other basis of any property as an
expense to capitalizing and depreciating
the cost or other basis, or vice versa (but
see section 11.08 of this revenue procedure for making such a change in method
of accounting under the final tangible
property regulations);
(xi) any change in method of accounting involving a change from one permissible method of accounting for the property
to another permissible method of accounting for the property. For example:
(A) a change from the straight-line
method of depreciation to the income
forecast method of depreciating for videocassettes. See Rev. Rul. 89-62, 1989-1
C.B. 78; or
(B) a change from charging the depreciation reserve with costs of removal and
crediting the depreciation reserve with
salvage proceeds to deducting costs of
removal as an expense (provided the costs
of removal are not required to be capitalized under any provision of the Code,
such as § 263(a)) and including salvage
proceeds in taxable income (see section
6.02 of this revenue procedure for making
this change for property for which depreciation is determined under § 167);
(xii) any change in method of accounting involving both a change from treating the cost or other basis of the property
as nondepreciable or nonamortizable

July 10, 2023

property to treating the cost or other basis
of the property as depreciable or amortizable property and the adoption of a method
of accounting for depreciation requiring
an election under § 167, § 168, § 1400I,
§ 1400L(c), former § 168, § 13261(g)(2)
or (3) of the 1993 Act, or any additional
first year depreciation deduction provision of the Code (for example, § 168(k),
§ 168(l), § 1400L(b), or § 1400N(d)) (for
example, a change in the treatment of
the space consumed in landfills placed in
service in 2006 from nondepreciable to
depreciable property (assuming section
6.01(1)(c)(xiii) of this revenue procedure
does not apply) and the making of an
election under § 168(f)(1) to depreciate
this property under the unit-of-production
method of depreciation under § 167);
(xiii) any change in method of accounting for any item of income or deduction
other than depreciation, even if the change
results in a change in computing depreciation under § 1.446-1(e)(2)(ii)(d)(2)(i),
(ii), (iii), (iv), (v), (vi), (vii), or (viii). For
example, a change in method of accounting involving:
(A) a change in inventory costs (for
example, when property is reclassified
from inventory property to depreciable
property, or vice versa) (but see section
11.02 of this revenue procedure for making a change in method of accounting
from inventory property to depreciable
property for unrecoverable line pack gas
or unrecoverable cushion gas, and section 11.06 of this revenue procedure for
making a change in method of accounting
from inventory property to depreciable
property for rotable spare parts); or
(B) a change in the character of a transaction from sale to lease, or vice versa (but
see section 6.03 of this revenue procedure
for making this change);
(xiv) a change from determining
depreciation under § 168 to determining
depreciation under former § 168 for any
property subject to the transition rules in
§ 203(b) or § 204(a) of the Tax Reform
Act of 1986, 1986-3 (Vol. 1) C.B. 1,
60-80;
(xv) any change in the placed-in-service date of a depreciable or amortizable
property. This change is corrected by
adjustments in the applicable taxable year
provided under § 1.446-1(e)(2)(ii)(d)(5)
(v);

July 10, 2023

(xvi) any property for which the taxpayer has claimed a federal income tax
credit (e.g., the rehabilitation credit under
§ 47), unless the change does not alter the
amount of the federal income tax credit;
(xvii) any qualified improvement property, as defined in § 168(e)(6), placed in
service by the taxpayer after December
31, 2017, to which section 6.18 of this
revenue procedure applies;
(xviii) any property to which section
4 or 5 of Rev. Proc. 2020-22, 2020-18
I.R.B. 745, applies. (See sections 4.02
and 4.03, or 5.02 of Rev. Proc. 2020-22,
as applicable, for making any changes to
depreciation for such property.);
(xix) any change in method of accounting to which section 6.20 of this revenue
procedure applies; or
(xx) the change in method of accounting specified in section 6.21 of this revenue procedure. However, an original
Form 3115 for such change in method of
accounting may be filed under this section 6.01 instead of section 6.21 of this
revenue procedure if the duplicate copy
was properly filed under this section 6.01
before May 11, 2021.
(2) Certain eligibility rules inapplicable. The eligibility rule in section 5.01(1)
(d) of Rev. Proc. 2015-13, 2015-5 I.R.B.
419, does not apply to this change. If
during any of the five taxable years ending with the year of change, a taxpayer
requested or made a change in method of
accounting from expensing to capitalizing, or vice versa, the cost or other basis
of an asset, the eligibility rule in section
5.01(1)(f) of Rev. Proc. 2015-13 is not
applicable to a change under this section
6.01 for that same asset.
(3) Additional requirements. A
taxpayer also must comply with the
following:
(a) Permissible method of accounting
for depreciation. A taxpayer must change
to a permissible method of accounting for
depreciation for the item of depreciable
or amortizable property. The permissible
method of accounting is the same method
that determines the depreciation allowable
for the item of property (as provided in
section 6.01(7) of this revenue procedure).
(b) Statements required. A taxpayer
(including a qualified small taxpayer as
defined in section 6.01(4)(b) of this revenue procedure) must provide the following

1220

statements, if applicable, and attach them
to the completed Form 3115:
(i) a detailed description of the present
and proposed methods of accounting. A
general description of these methods of
accounting is unacceptable (for example,
MACRS to MACRS, erroneous method
to proper method, claiming less than the
depreciation allowable to claiming the
depreciation allowable);
(ii) to the extent not provided elsewhere on the Form 3115, a statement
describing the taxpayer’s business or
income-producing activities. Also, if the
taxpayer has more than one business or
income-producing activity, a statement
describing the taxpayer’s business or
income-producing activity in which the
item of property at issue is primarily used
by the taxpayer;
(iii) to the extent not provided elsewhere on the Form 3115, a statement of
the facts and law supporting the proposed
method of accounting, new classification
of the item of property, and new asset
class in, as appropriate, Rev. Proc. 87-56
or Rev. Proc. 83-35. If the taxpayer is the
owner and lessor of the item of property
at issue, the statement of the facts and law
supporting the new asset class also must
describe the business or income-producing activity in which that item of property
is primarily used by the lessee;
(iv) to the extent not provided elsewhere on the Form 3115, a statement
identifying the year in which the item
of property was placed in service by the
taxpayer;
(v) if any item of property is public
utility property within the meaning of
§ 168(i)(10) or former § 167(i)(3)(A),
as applicable, a statement providing that
the taxpayer agrees to the following additional terms and conditions:
(A) a normalization method of accounting (within the meaning of former § 167(i)
(3)(G), former § 168(e)(3)(B), or § 168(i)
(9), as applicable) will be used for the
public utility property subject to the Form
3115;
(B) as of the beginning of the year
of change, the taxpayer will adjust its
deferred tax reserve account or similar
reserve account in the taxpayer’s regulatory books of account by the amount of
the deferral of federal income tax liability
associated with the § 481(a) adjustment

Bulletin No. 2023–28

applicable to the public utility property
subject to the Form 3115; and
(C) within 30 calendar days of filing
the federal income tax return for the year
of change, the taxpayer will provide a
copy of the completed Form 3115 to any
regulatory body having jurisdiction over
the public utility property subject to the
Form 3115;
(vi) if the taxpayer is changing the classification of an item of § 1250 property
placed in service after August 19, 1996, to
a retail motor fuels outlet under § 168(e)
(3)(E)(iii), a statement containing the following representation: “For purposes of
§ 168(e)(3)(E)(iii) of the Internal Revenue
Code, the taxpayer represents that (A) 50
percent or more of the gross revenue generated from the item of § 1250 property is
from the sale of petroleum products (not
including gross revenue from related services, such as the labor cost of oil changes
and gross revenue from the sale of nonpetroleum products such as tires and oil
filters), (B) 50 percent or more of the floor
space in the item of property is devoted
to the sale of petroleum products (not
including floor space devoted to related
services, such as oil changes and floor
space devoted to nonpetroleum products
such as tires and oil filters), or (C) the item
of § 1250 property is 1,400 square feet or
less.”; and
(vii) if the taxpayer is changing the
classification of an item of property from
§ 1250 property to § 1245 property under
§ 168 or former § 168, a statement of the
facts and law supporting the new § 1245
property classification, and a statement
containing the following representation:
“Each item of depreciable property that is
the subject of the Form 3115 filed under
section 6.01 of Rev. Proc. 2023-24 for
the year of change beginning [Insert the
date], and that is reclassified from [Insert,
as appropriate: nonresidential real property, residential rental property, qualified
leasehold improvement property, qualified restaurant property, qualified retail
improvement property, qualified improvement property as defined in § 168(e)(6)
(as amended by § 13204 of the TCJA),
19-year real property, 18-year real property, or 15-year real property] to an asset
class of [Insert, as appropriate, either:
Rev. Proc. 87-56, 1987-2 C.B. 674, or
Rev. Proc. 83-35, 1983-1 C.B. 745] that

Bulletin No. 2023–28

does not explicitly include § 1250 property, is § 1245 property for depreciation
purposes.”
(4) Reduced filing requirement for
qualified small taxpayers.
(a) In general. A qualified small taxpayer, as defined in section 6.01(4)(b)
of this revenue procedure, is required to
complete only the following information
on Form 3115 (Rev. December 2022) to
make this change:
(i) The identification section of page 1
(above Part I);
(ii) The signature section at the bottom
of page 1;
(iii) Part I;
(iv) Part II, all lines except lines 13,
15b, 16c, 17, and 19;
(v) Part IV, all lines except line 25; and
(vi) Schedule E.
(b) Definition of qualified small taxpayer. A “qualified small taxpayer”
is a taxpayer whose average annual
gross receipts, as determined under
§ 1.263(a)-3(h)(3), for the three preceding taxable years is less than or equal to
$10,000,000.
(5) Section 481(a) adjustment.
Because the adjusted basis of the property is changed as a result of a method
change made under this section 6.01 (see
section 6.01(6) of this revenue procedure), items are duplicated or omitted.
Accordingly, this change is made with
a § 481(a) adjustment. This adjustment
may result in either a negative § 481(a)
adjustment (a decrease in taxable income)
or a positive § 481(a) adjustment (an
increase in taxable income) and may be
a different amount for regular tax, alternative minimum tax, and adjusted current
earnings purposes. This § 481(a) adjustment equals the difference between the
total amount of depreciation taken into
account in computing taxable income
for the property under the taxpayer’s
present method of accounting (including
the amount attributable to any property
described in section 6.01(1)(b) of this
revenue procedure that is included in
the taxpayer’s Form 3115), and the total
amount of depreciation allowable for the
property under the taxpayer’s proposed
method of accounting (as determined
under section 6.01(7) of this revenue procedure, and including the amount attributable to any property described in section

1221

6.01(1)(b) of this revenue procedure that
is included in the taxpayer’s Form 3115),
for open and closed years prior to the
year of change. However, the amount of
the § 481(a) adjustment must be adjusted
to account for the proper amount of the
depreciation allowable that is required to
be capitalized under any provision of the
Code (for example, § 263A) at the beginning of the year of change.
(6) Basis adjustment. As of the beginning of the year of change, the basis of
depreciable property to which this section
6.01 applies must reflect the reductions
required by § 1016(a)(2) for the depreciation allowable for the property (as
determined under section 6.01(7) of this
revenue procedure).
(7) Meaning of depreciation allowable.
(a) In general. Section 6.01(7) of this
revenue procedure provides the amount
of the depreciation allowable determined
under § 56(a)(1), § 56(g)(4)(A) (as in
effect on the day before the date of enactment of the TCJA), § 167, § 168, or § 197,
or former § 168, § 1400I, or § 1400L(c).
This amount, however, may be limited by
other provisions of the Code (for example,
§ 280F).
(b) Section 56(a)(1) property. The
depreciation allowable for any taxable
year for property for which depreciation is
determined under § 56(a)(1) is determined
by using the depreciation method, recovery period, and convention provided for
under § 56(a)(1) that applies for the property’s placed-in-service date.
(c) Section 56(g)(4)(A) property. The
depreciation allowable for any taxable
year for property for which depreciation
is determined under § 56(g)(4)(A) (as in
effect on the day before the date of enactment of the TCJA) is determined by using
the depreciation method, recovery period
or useful life, as applicable, and convention provided for under § 56(g)(4)(A)
(as in effect on the day before the date of
enactment of the TCJA) that applies for
the property’s placed-in-service date.
(d) Section 167 property. Generally,
for any taxable year, the depreciation
allowable for property for which depreciation is determined under § 167, is determined either:
(i) under the depreciation method
adopted by the taxpayer for the property;
or

July 10, 2023

(ii) if that depreciation method does not
result in a reasonable allowance for depreciation or the taxpayer has not adopted
a depreciation method for the property, under the straight-line depreciation
method.
For determining the estimated useful
life and salvage value of the property, see
§ 1.167(a)-1(b) and (c), respectively.
The depreciation allowable for any taxable year for property subject to § 167(f)
(regarding certain property excluded from
§ 197) is determined by using the depreciation method and useful life prescribed
in § 167(f). If computer software is depreciated under § 167(f)(1) and is qualified
property (as defined in § 168(k)(2) as
amended by the TCJA and § 1.168(k)-2),
qualified property (as defined in § 168(k)
(2) as in effect on the day before the date
of enactment of the TCJA and § 1.168(k)1), 50-percent bonus depreciation property (as defined in § 168(k)(4) (as in effect
on the day before the date of enactment of
the Economic Stimulus Act of 2008, Pub.
L. No. 110-185, 122 Stat. 613 (February
13, 2008)) and § 1.168(k)-1), qualified
disaster assistance property (as defined in
§ 168(n)(2) (as in effect on the day before
the date of enactment of the Tax Technical
Corrections Act of 2018, Pub. L. No.
115-141, Division U, 132 Stat. 1211
(March 23, 2018)), qualified New York
Liberty Zone (Liberty Zone) property
(as defined in § 1400L(b)(2) (as in effect
on the day before the date of enactment
of the Tax Technical Corrections Act of
2018) and § 1.1400L(b)-1), qualified Gulf
Opportunity Zone (GO Zone) property
(as defined in § 1400N(d)(2) (as in effect
on the day before the date of enactment
of the Tax Technical Corrections Act
of 2018) and sections 2.02 and 2.03 of
Notice 2006-77, 2006-2 C.B. 590, as clarified, modified, and amplified by Notice
2007-36, 2007-1 C.B. 1000), specified
Gulf Opportunity Zone extension property (GO Zone extension property) (as
defined in § 1400N(d)(6) (as in effect
on the day before the date of enactment
of the Tax Technical Corrections Act of
2018) and section 4 of Notice 2007-36),
or qualified Recovery Assistance (RA)
property (as defined in sections 2.02 and
2.03 of Notice 2008-67, 2008-32 I.R.B.
307), the depreciation allowable for that
computer software under § 167(f)(1) is

July 10, 2023

also determined by taking into account the
additional first year depreciation deduction provided by § 168(k), § 168(n) (as in
effect on the day before the date of enactment of the Tax Technical Corrections
Act of 2018), § 1400L(b) (as in effect on
the day before the date of enactment of the
Tax Technical Corrections Act of 2018),
or § 1400N(d) (as in effect on the day
before the date of enactment of the Tax
Technical Corrections Act of 2018), or
by § 15345(a)(1) and (d)(1) of the Food,
Conservation, and Energy Act of 2008,
Pub. L. No. 110-246, 122 Stat. 1651 (June
18, 2008), as applicable, unless the taxpayer made a timely valid election not to
deduct any additional first year depreciation for the computer software.
(e) Section 168 property. The depreciation allowable for any taxable year
for property for which depreciation is
determined under § 168, is determined as
follows:
(i) by using either:
(A) the general depreciation system in
§ 168(a); or
(B) the alternative depreciation system in § 168(g) if the property is required
to be depreciated under the alternative
depreciation system pursuant to § 168(g)
(1) or other provisions of the Code (for
example, property described in § 263A(e)
(2)(A) or § 280F(b)(1)). Property required
to be depreciated under the alternative
depreciation system pursuant to § 168(g)
(1) includes property in a class (as set out
in § 168(e)) for which the taxpayer made
a timely valid election under § 168(g)(7);
(ii) if the property is qualified property,
50-percent bonus depreciation property,
qualified disaster assistance property,
Liberty Zone property, GO Zone property, GO Zone extension property, or RA
property, by also taking into account the
additional first year depreciation deduction provided by § 168(k), § 168(n) (as in
effect on the day before the date of enactment of the Tax Technical Corrections
Act of 2018), § 1400L(b) (as in effect
on the day before the date of enactment
of the Tax Technical Corrections Act of
2018), or § 1400N(d) (as in effect on the
day before the date of enactment of the
Tax Technical Corrections Act of 2018),
or by § 15345(a)(1) and (d)(1) of the
Food, Conservation, and Energy Act of
2008, as applicable, unless the taxpayer

1222

made a timely valid election not to deduct
the additional first year depreciation (or
made a deemed election not to deduct
the additional first year depreciation; for
further guidance, see, for example, Rev.
Proc. 2002-33, 2002-1 C.B. 963, Rev.
Proc. 2003-50, 2003-2 C.B. 119, Notice
2006-77, Notice 2008-67, section 5 of
Rev. Proc. 2011-26, 2011-16 I.R.B. 664,
Rev. Proc. 2015-48, 2015-40 I.R.B. 469,
or Rev. Proc. 2019-33, 2019-34 I.R.B.
662) for the class of property (as defined
in § 1.168(k)-2(f)(1)(ii), § 1.168(k)-1(e)
(2), § 1.1400L(b)-1(e)(2), or section 4.02
of Notice 2006-77, as applicable) in which
that property is included;
(iii) if the property is qualified second generation biofuel plant property (as
defined in § 168(l)(2) and (3)) or qualified cellulosic biofuel plant property (as
defined in former § 168(l)(2) and (3)),
by also taking into account the additional
first year depreciation deduction provided
by § 168(l)(1), unless the taxpayer made
a timely valid election not to deduct the
additional first year depreciation for the
property; and
(iv) if the property is qualified reuse and
recycling property (as defined in § 168(m)
(2)), by also taking into account the additional first year depreciation deduction
provided by § 168(m)(1), unless the taxpayer made a timely valid election not to
deduct the additional first year depreciation for the property.
(f) Section 197 property. The amortization allowable for any taxable year for
an amortizable § 197 intangible (including
any property for which a timely election
under § 13261(g)(2) of the 1993 Act was
made) is determined in accordance with
§ 1.197-2(f).
(g) Former § 168 property. The depreciation allowable for any taxable year for
property subject to former § 168 is determined by using either:
(i) the accelerated method of cost
recovery applicable to the property (for
example, for 5-year property, the recovery
method under former § 168(b)(1)); or
(ii) the straight-line method applicable
to the property if the property is required
to be depreciated under the straight-line
method (for example, property described
in former § 168(f)(2) or former § 280F(b)
(2)) or if the taxpayer elected to determine the depreciation allowance under

Bulletin No. 2023–28

the optional straight-line percentage (for
example, the straight-line method in former § 168(b)(3)).
(h) Qualified revitalization building.
The depreciation allowable for any taxable year for any qualified revitalization
building (as defined in § 1400I(b)(1) (as in
effect on the day before the date of enactment of the Tax Technical Corrections Act
of 2018)) for which the taxpayer has made
a timely valid election under § 1400I(a) is
determined as follows:
(i) if the taxpayer elected to deduct
one-half of any qualified revitalization
expenditures (as defined in § 1400I(b)(2)
and as limited by § 1400I(c) (as in effect
on the day before the date of enactment
of the Tax Technical Corrections Act of
2018)) chargeable to a capital account
with respect to the qualified revitalization
building for the taxable year in which the
building is placed in service by the taxpayer, the depreciation allowable for the
qualified revitalization building’s placedin-service year is equal to one-half of the
qualified revitalization expenditures for
the building and the depreciation allowable for the remaining depreciable basis
of the qualified revitalization building for
its placed-in-service year and subsequent
taxable years is determined using the
general d

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A6cfa516289d55020. Public record. Not legal advice.
