INCOME TAX

Rev. Rul. 2000–7, page 712. Removal costs, capital expenditures. This ruling holds that if the retirement and removal of a depreciable asset occurs in connection with the installation or production of a replacement asset, the costs incurred in removing the retired asset are not required to be capitalized under section 263 or 263A of the Code as part of the cost of the replacement asset. Rev. Proc. 99–49 modified and amplified.