Ezel / IRS Rulings / 201049038

CCA 201049038: Retirement means permanent withdrawal of depreciable property

Number
201049038
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Retirement and Abandonment
Topics
Income and deductions
Code sections
§ 167, § 1250
Ruling dated
November 3, 2010
Publicly released
December 10, 2010
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 2010, 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 2010
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 Advice addresses the meaning of “retirement” for depreciable property. It states that retirement means permanently withdrawing depreciable property from use in a trade or business or in producing income. The definition applies to all depreciable property, including § 1250 property. The memorandum also assigns follow-up work on a second question.

Ruling snapshot

  • Question: Does “retirement” mean permanent withdrawal of depreciable property from business or income-producing use, including § 1250 property?
  • Outcome: advice given
  • Key authorities: Treas. Reg. § 1.167(a)-8(a); IRC §§ 167 and 1250.

Full text (IRS public release)

ID: CCA_2010110308041757 Number: 201049038
Release Date: 12/10/2010
Office: ------------
UILC: 167.10-00

From: ------------------
Sent: Wednesday, November 03, 2010 8:04:21 AM
To: --------------------
Cc: ------------------------------------------------
Subject: RE:

Hi ----. I am assigning this to --------------------who worked on this case previously. He will be focusing on the second question.

As to the first question, the answer is "yes." Under section 1.167(a)-8(a), the term "retirement" means the permanent withdrawal of depreciable property from use in the trade or business or in the production of income. This definition applies to any depreciable property, including section 1250 property.

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