Ezel / IRS Rulings / 200914060

CCA 200914060: Building components did not qualify for separate cost recovery

Number
200914060
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Modified Accelerated Cost Recovery System
Topics
Income and deductions
Code sections
§ 168
Ruling dated
March 20, 2009
Publicly released
April 3, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2009
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel addressed whether components of a building could receive separate cost recovery. The email states that the legislative histories of the Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986, together with material supplied by the recipient, supported denying component cost recovery. That conclusion assumed the components were not leasehold improvements. The short advice provides no further description of the building or its components.

Ruling snapshot

  • Question: Could components of a building receive separate cost recovery under the depreciation rules?
  • Outcome: Advice given: deny component cost recovery if the components are not leasehold improvements.
  • Key authorities: IRC § 168; Economic Recovery Tax Act of 1981; Tax Reform Act of 1986.

Full text (IRS public release)

ID: CCA_2009032014154757 Number: 200914060
Release Date: 4/3/2009
Office: ------------
UILC: 168.00-00

From: ------------------
Sent: Friday, March 20, 2009 2:15:49 PM
To: ----------------------
Cc:
Subject: RE: follow-up

Hi -------- This is the material that I was referencing to. The legislative history of the
1986 Act and the 1981 Act (ERTA) along with the material that you attached supports
the denial of component cost recovery of buildings assuming the components are not
leasehold improvements.

-----------------

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