26 CFR 601.204: Changes in accounting periods and …

1 26 CFR : Changes in accounting periods and in methods of accounting . (Also Part I, 56, 61, 77, 118, 162, 163, 166, 167, 168, 171, 174, 179D, 194, 195, 197, 248, 263, 263A, 267, 280F, 404, 446, 447, 448, 451, 454, 455, 461, 467, 471, 472, 475, 481, 585, 709, 816, 832, 833, 846, 860A-860G, 861, 904, 953, 985, 1272, 1273, 1278, 1281, 1363, 1400I, 1400L, 1400N; , , , , , , , , , , , , , , (a)-2, (a)-3(b), (a)-4, (a)-7, (a)-8, (a)-11, (a)-14, (e)-1, (d)-1, (i)-1, (i)-4, (i)-6, (i)-7, (i)-8, (k)-1, , , , , , , , , , (a)-1, (a)-2, (a)-3, (a)-4, (a)-5, , , , , , (a)-1, , (b)-1T, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , (b)-1.) Rev. Proc. 2017-30 LIST OF AUTOMATIC Changes .. 7 SECTION 1. GROSS INCOME ( 61) .. 7 .01 Up-front Payments for Network Upgrades received by Utilities .. 7 SECTION 2. COMMODITY CREDIT LOANS ( 77).

2 8 .01 Treating amounts received as loans .. 8 SECTION 3. TRADE OR BUSINESS EXPENSES ( 162) .. 8 .01 Advances made by a lawyer on behalf of clients .. 8 .02 ISO 9000 Costs .. 9 .03 Restaurant or tavern smallwares packages .. 9 .04 Timber grower fertilization costs .. 10 .05 Materials and supplies .. 10 .06 Repair and maintenance costs .. 10 .07 Wireline network asset maintenance allowance and units of property methods of accounting under Rev. Proc. 2011-27 .. 11 .08 Wireless network asset maintenance allowance and units of property methods of accounting under Rev. Proc. 2011-28 .. 11 .09 Method of accounting under Rev. Proc. 2011-43 for taxpayers in the business of transporting, delivering, or selling electricity .. 12 .10 Method of accounting under Rev. Proc. 2013-24 for taxpayers in the business of generating steam or electric power.. 13 .11 Cable network asset capitalization methods of accounting under Rev. Proc. 2015-12 .. 14 SECTION 4. BAD DEBTS ( 166).

3 16 .01 Change from reserve method to specific charge-off method .. 16 2 .02 Conformity election by bank after previous election automatically revoked .. 16 SECTION 5. INTEREST EXPENSE ( 163) AND AMORTIZABLE BOND PREMIUM ( 171) .. 17 .01 Revocation of 171(c) election .. 17 .02 Change to comply with 163(e)(3) .. 19 SECTION 6. DEPRECIATION OR AMORTIZATION ( 56(a)(1), 56(g)(4)(A), 167, 168, 197, 280F(a), 1400I, 1400L, or 1400N(d), OR FORMER 168) .. 20 .01 Impermissible to permissible method of accounting for depreciation or amortization .. 20 .02 Permissible to permissible method of accounting for depreciation .. 37 .03 Sale, lease, or financing transactions .. 44 .04 Change in general asset account treatment due to a change in the use of MACRS property .. 46 .05 Change in method of accounting for depreciation due to a change in the use of MACRS 48 .06 Depreciation of qualified non-personal use vans and light trucks .. 49 .07 Impermissible to permissible method of accounting for depreciation or amortization for disposed depreciable or amortizable property.

4 50 .08 Tenant construction 55 .09 Safe harbor method of accounting for determining the depreciation of certain tangible assets used by wireless telecommunications carriers under Rev. Proc. 2011-22 .. 58 .10 Partial dispositions of tangible depreciable assets to which the IRS s adjustment pertains ( 168; (i)-8) .. 60 .11 Depreciation of leasehold improvements ( 167, 168, and 197; (a)-4) .. 63 .12 Permissible to permissible method of accounting for depreciation of MACRS property ( 168; (i)-1, (i)-7, and (i)-8) .. 66 .13 Disposition of a building or structural component ( 168; (i)-8) .. 76 .14 Dispositions of tangible depreciable assets (other than a building or its structural components) ( 168; (i)-8) .. 88 .15 Dispositions of tangible depreciable assets in a general asset account ( 168(i)(4); (i)-1) .. 98 .16 Summary of certain Changes in methods of accounting related to dispositions of MACRS 105 .17 Depreciation of fiber optic transfer node and fiber optic cable used by a cable system operator ( 167 and 168).

5 108 .18 Revocation of partial disposition election under the remodel-refresh safe harbor described in Rev. Proc. 2015-56 .. 110 SECTION 7. RESEARCH AND EXPERIMENTAL EXPENDITURES ( 174) .. 113 .01 Changes to a different method or different amortization period .. 113 SECTION 8. ELECTIVE EXPENSING PROVISIONS ( 179D) .. 116 .01 Deduction for Energy Efficient Commercial Buildings ( 179D) .. 116 SECTION 9. COMPUTER SOFTWARE EXPENDITURES ( 162, 167, and 197) .. 118 .01 Computer software expenditures .. 118 SECTION 10. START-UP EXPENDITURES AND ORGANIZATIONAL FEES ( 195, 248 AND 709) .. 119 3 .01 Start-up expenditures .. 119 .02 Organizational expenditures under 248 .. 120 .03 Organization fees under 122 SECTION 11. CAPITAL EXPENDITURES ( 263) .. 124 .01 Package design costs .. 124 .02 Line pack gas or cushion gas .. 125 .03 Removal costs .. 125 .04 Distributor commissions .. 127 .05 Intangibles .. 128 .06 Rotable spare parts safe harbor method.

6 128 .07 Repairable and reusable spare parts .. 129 .08 Tangible property .. 134 .09 Railroad track structure expenditures .. 143 .10 Remodel-refresh safe harbor method .. 143 SECTION 12. UNIFORM CAPITALIZATION (UNICAP) METHODS ( 263A) .. 150 .01 Certain uniform capitalization (UNICAP) methods used by resellers and reseller-producers .. 150 .02 Certain uniform capitalization (UNICAP) methods used by producers and reseller-producers .. 158 .03 Impact fees .. 160 .04 Change to capitalizing environmental remediation costs under 263A .. 161 .05 Change in allocating environmental remediation costs under 263A .. 161 .06 Safe harbor methods under 263A for certain dealerships of motor vehicles .. 162 .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.. 164 .08 Change to a reasonable allocation method described in (f)(4) for self-constructed assets .. 165 .09 Real property acquired through foreclosure.

7 167 .10 Sales-Based Royalties .. 168 .11 Treatment of Sales-Based Vendor Chargebacks under a Simplified Method .. 170 .12 ratio method .. 171 .13 Depletion .. 176 .14 Interest capitalization .. 178 SECTION 13. LOSSES, EXPENSES AND INTEREST WITH RESPECT TO TRANSACTIONS BETWEEN RELATED TAXPAYERS ( 267) .. 179 .01 Change to comply with 267 .. 179 SECTION 14. DEFERRED COMPENSATION ( 404) .. 180 .01 Deferred compensation .. 180 .02 Grace period contributions .. 182 SECTION 15. METHODS OF accounting ( 446) .. 183 .01 Change in overall method from the cash method to an accrual method .. 183 .02 Multi-year insurance policies for multi-year service warranty contracts .. 191 .03 Taxpayers changing to overall cash method .. 192 .04 Nonaccrual-experience method .. 194 .05 Interest accruals on short-term consumer loans Rule of 78 s method .. 197 .06 Film producer s treatment of certain creative property costs .. 198 4 .07 Deduction of incentive payments to health care providers.

8 199 .08 Change by bank for uncollected interest.. 200 .09 Change from the cash method to an accrual method for specific 202 .10 Multi-year service warranty contracts .. 204 .11 Overall cash method for specified transportation industry taxpayers .. 206 .12 Change to overall cash/hybrid method for certain banks .. 209 .13 Change to overall cash method for farmers .. 213 .14 Nonshareholder contributions to capital under 118 .. 214 .15 Debt issuance costs .. 216 .16 Transfers of interties under the safe harbor described in Notice 2016-36 ( 118).. 216 .17 Change to or from the net asset value (NAV) method.. 218 SECTION 16. TAXABLE YEAR OF INCLUSION ( 451) .. 221 .01 Accrual of interest on nonperforming loans .. 221 .02 Advance rentals .. 223 .03 State or local income or franchise tax refunds .. 223 .04 Capital Cost Reduction Payments .. 224 .05 Credit card annual fees .. 224 .06 Credit card late fees .. 225 .07 Advance payments .. 226 .08 Credit card cash advance fees.

9 228 .09 Retainages .. 229 .10 Advance payments change in applicable financial statements (AFS) .. 231 SECTION 17. OBLIGATIONS ISSUED AT DISCOUNT ( 454) .. 235 .01 Series E, EE or I savings bonds .. 235 SECTION 18. PREPAID SUBSCRIPTION INCOME ( 455) .. 237 .01 Prepaid subscription income .. 237 SECTION 19. TAXABLE YEAR INCURRED ( 461) .. 238 .01 Timing of incurring liabilities for employee compensation .. 238 (1) Self-insured employee medical benefits .. 238 (2) Bonuses .. 240 (3) Vacation pay, sick pay, and severance pay .. 241 .02 Timing of incurring liabilities for real property taxes, personal property taxes, state income taxes, and state franchise taxes .. 243 .03 Timing of incurring liabilities under a workers compensation act, tort, breach of contract, or violation of law .. 245 .04 Timing of incurring certain liabilities for payroll taxes .. 246 .05 Cooperative advertising .. 249 .06 Timing of incurring certain liabilities for services or insurance.

10 250 .07 Rebates and allowances .. 250 .08 Ratable accrual of real property taxes .. 251 .09 California Franchise Taxes .. 252 .10 Gift cards issued as a refund for returned goods .. 253 .11 Timing of incurring liabilities under the recurring item exception to the economic performance rules .. 254 .12 Economic performance safe harbor for ratable service contracts .. 255 5 SECTION 20. RENT ( 467) .. 255 .01 Change from an improper method of inclusion of rental income or expense to inclusion in accordance with the rent allocation .. 255 SECTION 21. INVENTORIES ( 471) .. 256 .01 Cash discounts .. 256 .02 Estimating inventory shrinkage .. 258 .03 Small taxpayer exception from requirement to account for inventories under 260 .04 Qualifying volume-related trade discounts .. 261 .05 Impermissible methods of identification and valuation of inventories.. 262 .06 Core Alternative Valuation Method .. 264 .07 Replacement cost for automobile dealers parts inventory.