SECTION 2. BACKGROUND

.01 Section 168(i)(4) provides that, under regulations, a taxpayer may maintain one or more general asset accounts for any property to which § 168 applies. The rules for general asset accounts are provided in § 1.168(i)–1 of the Income Tax Regulations, which allows a taxpayer to make an election to group assets into one or more general asset accounts. The assets in any particular account are depreciated as a single asset. Each general asset account generally includes only assets that are placed in service by the taxpayer in the same taxable year and that have the same

June 23, 1997 20 1997–25 I.R.B.

allowable, whichever is greater, for the property as of the end of the taxable year immediately preceding the year of change.