Ezel / IRS Rulings / 1330034
Chief Counsel Advice 1330034 Released July 26, 2013 Advice

CCA advises that infrastructure assets appear to be dedicated improvements

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This page covers one taxpayer's ruling from 2013, 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 2013
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 resolved one taxpayer's situation on its specific facts, 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 recommends that an examination team abandon its position that certain infrastructure assets are intangible assets with an indeterminate useful life. The advice says more facts are needed to determine whether the assets are intangible assets under Treas. Reg. § 1.263(a)-4(d)(8)(i) or dedicated improvements under § 1.263(a)-4(d)(8)(iv). Based on the facts available, the assets appear to be dedicated improvements.

Ruling snapshot

  • Question: Should the infrastructure assets be treated as intangible assets with an indeterminate useful life or as dedicated improvements?
  • Outcome: Advice given, the assets appeared to be dedicated improvements on the facts then available.
  • Key authorities: IRC § 263; Treas. Reg. § 1.263(a)-4(d)(8)(i), (iv).

Full text (IRS public release)

ID: CCA_2013070213180051
Office: ------------
UILC: 167.01-00
Number: 201330034
Release Date: 7/26/2013
From: ---------------------
Sent: Tuesday, July 02, 2013 1:18:01 PM
To: -----------------
Cc: -------------------
Subject: -----------------------

Hi --------

In response to your inquiry, we recommend that the exam team abandon its argument
that the infrastructure assets at issue are intangible assets with an indeterminate useful
life. Further factual development is needed to determine whether these assets are
intangible assets under section 1.263(a)-4(d)(8)(i) of the Income Tax Regulations or
dedicated improvements under section 1.263(a)-4(d)(8)(iv). Based upon the facts
provided to us at this point, the infrastructure assets appear to be dedicated
improvements.

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