SECTION 4. Section 2.05 of the

APPENDIX of Rev. Proc. 2002–9 is added to read as follows:

“.05 Impermissible to permissible method of accounting for depreciation or amortization for disposed depreciable or amortizable property .

(1) Description of change . This change applies to a taxpayer that wants to make the change in method of accounting for depreciation or amortization (depreciation) provided under section 3 of Rev. Proc. 2004–11, 2004–3 I.R.B. 311, for an item of depreciable or amortizable property that has been disposed of by the taxpayer. Section 3 of Rev. Proc. 2004–11 allows a taxpayer to make a change in method of accounting for depreciation for the disposed property if the taxpayer used an impermissible method of accounting for depreciation for the property under which the taxpayer did not take into account any depreciation allowance, or did take into account some depreciation but less than the depreciation allowable, in the year of change (as defined in section 2.05(3) of this APPENDIX) or any prior taxable year.

(2) Scope . This change applies to a taxpayer and an item of depreciable or amortizable property that are within the scope of section 3.01 of Rev. Proc. 2004–11, provided:

January 20, 2004 318 2004-3 I.R.B.