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Treasury Regulations (26 C.F.R.)

26 CFR § 1.167(d)-1

Agreement as to useful life and rates of depreciation.

Official textecfr.govlast amended

After August 16, 1954, a taxpayer may, for taxable years ending after December 31, 1953, enter into an agreement with respect to the estimated useful life, method and rate of depreciation and treatment of salvage of any property which is subject to the allowance for depreciation. An application for such agreement may be made to the district director for the internal revenue district in which the taxpayer's return is required to be filed. Such application shall be filed in quadruplicate and shall contain in such detail as may be practical the following information:

# (a)

The character and location of the property.

# (b)

The original cost or other basis and date of acquisition.

# (c)

Proper adjustments to the basis including depreciation accumulated to the first taxable year to be covered by the agreement.

# (d)

Estimated useful life and estimated salvage value.

# (e)

Method and rate of depreciation.

# (f)

Any other facts and circumstances pertinent to making a reasonable estimate of the useful life of the property and its salvage value.

The agreement must be in writing and must be signed by the taxpayer and by the district director. The agreement must be signed in quadruplicate, and two of the signed copies will be returned to the taxpayer. The agreement shall set forth its effective date, the estimated remaining useful life, the estimated salvage value, and rate and method of depreciation of the property and the facts and circumstances taken into consideration in adoption of the agreement, and shall relate only to depreciation allowances for such property on and after the effective date of the agreement. Such an agreement shall be binding on both parties until such time as facts and circumstances which were not taken into account in making the agreement are shown to exist. The party wishing to modify or change the agreement shall have the responsibility of establishing the existence of such facts and circumstances. Any change in the useful life or rate specified in such agreement shall be effective only prospectively, that is, it shall be effective beginning with the taxable year in which notice of the intention to change, including facts and circumstances warranting the adjustment of useful life and rate, is sent by the party proposing the change to the other party and is sent by registered mail, if such notice is mailed before September 3, 1958, or is sent by certified mail or registered mail, if such notice is mailed after September 2, 1958. A copy of the agreement (and any modification thereof) shall be filed with the taxpayer's return for the first taxable year which is affected by the agreement (or any modification thereof). A signed copy should be retained with the permanent records of the taxpayer. For rules relating to changes in method of depreciation, see § 1.167(e)-1 and section 446 and the regulations thereunder.

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In this part (40 sections)
  1. 1.167(a)-2 · Tangible property.
  2. 1.167(a)-3 · Intangibles.
  3. 1.167(a)-4 · Leased property.
  4. 1.167(a)-5 · Apportionment of basis.
  5. 1.167(a)-5T · Application of section 1060 to section 167 (temporary).
  6. 1.167(a)-6 · Depreciation in special cases.
  7. 1.167(a)-7 · Accounting for depreciable property.
  8. 1.167(a)-8 · Retirements.
  9. 1.167(a)-9 · Obsolescence.
  10. 1.167(a)-10 · When depreciation deduction is allowable.
  11. 1.167(a)-11 · Depreciation based on class lives and asset depreciation…
  12. 1.167(a)-12 · Depreciation based on class lives for property first…
  13. 1.167(a)-13T · Certain elections for intangible property (temporary).
  14. 1.167(a)-14 · Treatment of certain intangible property excluded from…
  15. 1.167(b)-0 · Methods of computing depreciation.
  16. 1.167(b)-1 · Straight line method.
  17. 1.167(b)-2 · Declining balance method.
  18. 1.167(b)-3 · Sum of the years-digits method.
  19. 1.167(b)-4 · Other methods.
  20. 1.167(c)-1 · Limitations on methods of computing depreciation under…
  21. 1.167(d)-1 · Agreement as to useful life and rates of depreciation.
  22. 1.167(e)-1 · Change in method.
  23. 1.167(f)-1 · Reduction of salvage value taken into account for certain…
  24. 1.167(g)-1 · Basis for depreciation.
  25. 1.167(h)-1 · Life tenants and beneficiaries of trusts and estates.
  26. 1.167(i)-1 · Depreciation of improvements in the case of mines, etc.
  27. 1.167(l)-1 · Limitations on reasonable allowance in case of property of…
  28. 1.167(l)-2 · Public utility property; election as to post-1969 property…
  29. 1.167(l)-3 · Multiple regulation, asset acquisitions, reorganizations,…
  30. 1.167(l)-4 · Public utility property; election to use asset…
  31. 1.167(m)-1 · Class lives.
  32. 1.168-5 · Special rules.
  33. 1.168(a)-1 · Modified accelerated cost recovery system.
  34. 1.168(b)-1 · Definitions.
  35. 1.168(d)-0 · Table of contents for the applicable convention rules.
  36. 1.168(d)-1 · Applicable conventions—half-year and mid-quarter…
  37. 1.168(h)-1 · Like-kind exchanges involving tax-exempt use property.
  38. 1.168(i)-0 · Table of contents for the general asset account rules.
  39. 1.168(i)-1 · General asset accounts.
  40. 1.168(i)-2 · Lease term.
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