[Federal Register Volume 85, Number 218 (Tuesday, November 10, 2020)]
[Proposed Rules]
[Pages 71587-71588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24026]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-106808-19]
RIN 1545-BP32


Additional First Year Depreciation Deduction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Partial withdrawal of a notice of proposed rulemaking.

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SUMMARY: This document withdraws a portion of a notice of proposed 
rulemaking published in the Federal Register on September 24, 2019. The 
withdrawn portion relates to the extent to which a partner is deemed to 
have a depreciable interest in property held by a partnership.

DATES: Section 1.168(k)-2(b)(3)(iii)(B)(5) of proposed rules (REG-
106808-19) published in the Federal Register on September 24, 2019 (84 
FR 50152) is withdrawn effective January 11, 2021].

FOR FURTHER INFORMATION CONTACT: Elizabeth R. Binder at (202) 317-4869 
or Kathleen Reed at (202) 317-4660 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    On August 8, 2018, the Department of the Treasury (Treasury 
Department) and the IRS published a notice of proposed rulemaking (REG-
104397-18) in the Federal Register (83 FR 39292) containing proposed 
regulations under section 168(k) (2018 Proposed Regulations). After 
full consideration of the comments received on the 2018 Proposed 
Regulations and the testimony heard at the public hearing on November 
28, 2018, the Treasury Department and the IRS published final 
regulations in the Federal Register as TD 9874 on September 24, 2019 
(84 FR 50208) (the 2019 Final Regulations) adopting the 2018 Proposed 
Regulations with modifications in response to such comments and 
testimony.
    Concurrently with the publication of the 2019 Final Regulations, 
the Treasury Department and the IRS published an additional notice of 
proposed rulemaking (REG-106808-19) in the Federal Register (84 FR 
50152) withdrawing certain provisions of the 2018 Proposed Regulations 
and proposing additional guidance under section 168(k) (2019 Proposed 
Regulations).
    The 2019 Proposed Regulations include Sec.  1.168(k)-
2(b)(3)(iii)(B)(5), which addresses the extent to which a partner is 
deemed to have a depreciable interest in property held by a 
partnership. This document withdraws Sec.  1.168(k)-2(b)(3)(iii)(B)(5) 
of the 2019 Proposed Regulations for the reason stated in the Summary 
of Comments and Explanation of Revisions section of the final 
regulations published in the Federal Register by the Treasury 
Department and the IRS as TD 9916 on November 10, 2020.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Partial Withdrawal of a Notice of Proposed Rulemaking

    Accordingly, under the authority of 26 U.S.C. 7805, Sec.  1.168(k)-
2(b)(3)(iii)(B)(5) of the notice of proposed rulemaking (REG-106808-19) 
published in the Federal Register on

[[Page 71588]]

September 24, 2019 (84 FR 50152) is withdrawn.

Sunita Lough,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2020-24026 Filed 11-5-20; 4:15 pm]
BILLING CODE 4830-01-P