§ 1.168(i)-0. Table of contents for the general asset account rules.

§ 1.168(i)-1 General asset accounts.

(a) Scope.

(b) Definitions.

(1) Unadjusted depreciable basis.

(2) Unadjusted depreciable basis of the general asset account.

(3) Adjusted depreciable basis of the general asset account.

(4) Building.

(5) Expensed cost.

(6) Mass assets.

(7) Portion of an asset.

(8) Remaining adjusted depreciable basis of the general asset account.

(9) Structural component.

(c) Establishment of general asset accounts.

(1) Assets eligible for general asset accounts.

(i) General rules.

(ii) Special rules for assets generating foreign source income.

(2) Grouping assets in general asset accounts.

(i) General rules.

(ii) Special rules.

(3) Examples.

(d) Determination of depreciation allowance.

(1) In general.

(2) Assets in general asset account are eligible for additional first year depreciation deduction.

(3) No assets in general asset account are eligible for additional first year depreciation deduction.

(4) Special rule for passenger automobiles.

(e) Dispositions from a general asset account.

(1) Scope and definition.

(i) In general.

(ii) Disposition of a portion of an asset.

(2) General rules for a disposition.

(i) No immediate recovery of basis.

(ii) Treatment of amount realized.

(iii) Effect of disposition on a general asset account.

(iv) Coordination with nonrecognition provisions.

(v) Manner of disposition.

(vi) Disposition by transfer to a supplies account.

(vii) Leasehold improvements.

(viii) Determination of asset disposed of.

(ix) Examples.

(3) Special rules.

(i) In general.

(ii) Disposition of all assets remaining in a general asset account.

(iii) Disposition of an asset in a qualifying disposition.

(iv) Transactions subject to section 168(i)(7).

(v) Transactions subject to section 1031 or 1033.

(vi) Technical termination of a partnership.

(vii) Anti-abuse rule.

(f) Assets generating foreign source income.

(1) In general.

(2) Source of ordinary income, gain, or loss.

(i) Source determined by allocation and apportionment of depreciation allowed.

(ii) Formula for determining foreign source income, gain, or loss.

(3) Section 904(d) separate categories.

(g) Assets subject to recapture.

(h) Changes in use.

(1) Conversion to any personal use.

(2) Change in use results in a different recovery period and/or depreciation method.

(i) No effect on general asset account election.

(ii) Asset is removed from the general asset account.

(iii) New general asset account is established.

(i) Redetermination of basis.

(j) Identification of disposed or converted asset.

(k) Effect of adjustments on prior dispositions.

(l) Election.

(1) Irrevocable election.

(2) Time for making election.

(3) Manner of making election.

(m) Effective/applicability dates.