26 CFR 601.204: Changes in accounting periods and in ...

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.)

2 Rev. Proc. 2018-31 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) .. 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.

3 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) .. 16 .01 Change from reserve method to specific charge-off method .. 16 2.

4 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.

5 04 Change in general asset account treatment due to a change in the use of MACRS property .. 47 .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 .. 51 .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.

6 59 .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) .. 89 .15 Dispositions of tangible depreciable assets in a general asset account ( 168(i)(4); (i)-1).

7 98 .16 Summary of certain Changes in methods of accounting related to dispositions of MACRS 106 .17 Depreciation of fiber optic transfer node and fiber optic cable used by a cable system operator ( 167 and 168) .. 109 SECTION 7. RESEARCH AND EXPERIMENTAL EXPENDITURES ( 174) .. 110 .01 Changes to a different method or different amortization period .. 110 SECTION 8. ELECTIVE EXPENSING PROVISIONS ( 179D) .. 114 .01 Deduction for Energy Efficient Commercial Buildings ( 179D) .. 114 SECTION 9. COMPUTER SOFTWARE EXPENDITURES ( 162, 167, and 197) .. 115 .01 Computer software expenditures .. 116 SECTION 10.

8 START-UP EXPENDITURES AND ORGANIZATIONAL FEES ( 195, 248 AND 709) .. 116 .01 Start-up expenditures .. 117 .02 Organizational expenditures under 248 .. 118 3 .03 Organization fees under 120 SECTION 11. CAPITAL EXPENDITURES ( 263) .. 121 .01 Package design costs .. 121 .02 Line pack gas or cushion gas .. 122 .03 Removal costs .. 123 .04 Distributor commissions .. 125 .05 Intangibles .. 126 .06 Rotable spare parts safe harbor method.. 126 .07 Repairable and reusable spare parts .. 127 .08 Tangible property .. 131 .09 Railroad track structure expenditures .. 141 .10 Remodel-refresh safe harbor method.

9 141 SECTION 12. UNIFORM CAPITALIZATION (UNICAP) METHODS ( 263A) .. 147 .01 Certain uniform capitalization (UNICAP) methods used by resellers and reseller-producers .. 147 .02 Certain uniform capitalization (UNICAP) methods used by producers and reseller-producers .. 155 .03 Impact fees .. 157 .04 Change to capitalizing environmental remediation costs under 263A .. 158 .05 Change in allocating environmental remediation costs under 263A .. 159 .06 Safe harbor methods under 263A for certain dealerships of motor vehicles .. 159 .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.

10 161 .08 Change to a reasonable allocation method described in (f)(4) for self-constructed assets .. 162 .09 Real property acquired through foreclosure .. 164 .10 Sales-Based Royalties .. 165 .11 Treatment of Sales-Based Vendor Chargebacks under a Simplified Method .. 167 .12 ratio method .. 168 .13 Depletion .. 174 .14 Interest capitalization .. 175 SECTION 13. LOSSES, EXPENSES AND INTEREST WITH RESPECT TO TRANSACTIONS BETWEEN RELATED TAXPAYERS ( 267) .. 177 .01 Change to comply with 267 .. 177 SECTION 14. DEFERRED COMPENSATION ( 404) .. 177 .01 Deferred compensation .. 177 .02 Grace period contributions.