Property Subject to Accelerated Cost Recovery System
(1)Intentionally left blank —Ed.
(a)In general, the Accelerated Cost Recovery System (ACRS) is available to recovery property placed in service in tax years beginning on or after January 1, 1985. “Recovery Property” means tangible property of a character subject to the allowance for depreciation. This property must be used in a trade or business or be held for the production of income.
(b)Property is considered placed in service when it is in a condition or state of readiness and availability for a specifically assigned function whether in a trade or business, in the production of income, in a tax-exempt activity, or in a personal activity. Where property was placed in service for personal use in a tax year which begins before 1985 and is thereafter converted to business or income producing use, the property is not recovery property for Oregon purposes.
(2)Property Excluded from ACRS Treatment.
(a)Recovery property does not include property which is placed in service by the taxpayer prior to the taxpayer’s tax year which begins in 1985.
(b)Recovery property does not include property which is the subject of transactions referred to in Internal Revenue Code (IRC) Section 168(e)(4). For purposes of this rule, the following dates shall be substituted for dates used in IRC Sections 168(e)(4):
(A)For “after December 31, 1980” substitute “in taxable years beginning on or after January 1, 1985;”
(B)For “1980” substitute “the taxpayer’s tax year which begins in 1984;” and
(C)For “January 1, 1981” substitute “the taxpayer’s tax year which begins in 1985.”
(c)Recovery property does not include property which is described in IRC Sections 168(e)(2), 168(e)(3), and 168(e)(5).
Rule 150-316-0567 — Property Subject to Accelerated Cost Recovery System,