Section 457.—Deferred — Internal Revenue Bulletin 2004-28

26 CFR 1.457–8: Funding rules for eligible plans.

Whether a governmental plan described in § 457(b) of the Code may invest in a group trust. See Rev. Rul. 2004-67, page 28.

§1.280F–4T [Amended]

Par. 5 Section 1.280F–4T is amended as follows:

The fifth sentence in paragraph (a)(1) is amended by removing “§1.280F–6T(d)(2)” and adding “§1.280F–6(d)(2)” in its place.

§1.280F–5T [Amended]

Par. 6 Section 1.280F–5T is amended as follows:

The first sentence in paragraph (d)(1) is amended by removing “§1.280F–6T(d)(3)(i)” and adding “§1.280F–6(d)(3)(i)” in its place.

§1.280F–6T [Redesignated as §1.280F–6 and amended]

Par. 7 Section 1.280F–6T is redesignated as §1.280F–6 and the word “(temporary)” is removed from the section heading. Newly-designated §1.280F–6 is amended as follows:

Paragraph (b)(1)(iv) is amended by removing “section 168(j)(5)(D)” and adding “section 168(i)(2)(B)” in its place.
Paragraph (f) is added. The addition reads as follows:

§1.280F–6 Special rules and definitions.

- - - (f) Effective date —(1) In general . Except as provided in paragraph (f)(2) of this section, this section applies to property placed in service by a taxpayer on or after July 7, 2003. For regulations applicable to property placed in service before July 7, 2003, see §1.280F–6T as in effect prior to July 7, 2003 (§1.280F–6T as contained in 26 CFR part 1, revised as of April 1, 2003). (2) Property placed in service before July 7, 2003 . The following rules apply to property that is described in paragraph (c)(3)(iii) of this section, was placed in service by the taxpayer before July 7, 2003, and was treated by the taxpayer as a passenger automobile under §1.280F–6T as in effect prior to July 7, 2003 (pre-effective date vehicle):

(i) Except as provided in paragraphs (f)(2)(ii), (iii), and (iv) of this section, a pre-effective date vehicle will be treated as a passenger automobile to which section 280F(a) applies.

(ii) A pre-effective date vehicle will be treated as property to which section 280F(a) does not apply if the taxpayer adopts that treatment in determining depreciation deductions on the taxpayer’s original return for the year in which the vehicle is placed in service.

(iii) A pre-effective date vehicle will be treated, to the extent provided in this paragraph (f)(2)(iii), as property to which section 280F(a) does not apply if the taxpayer adopts that treatment on an amended Federal tax return in accordance with this paragraph (f)(2)(iii). This paragraph (f)(2)(iii) applies only if, on or before December 31, 2004, the taxpayer files, for all applicable taxable years, amended Federal tax returns (or qualified amended returns, if applicable (for further guidance, see Rev. Proc. 94–69, 1994–2 C.B. 804, and §601.601(d)(2)(ii)( b ) of this chapter)) treating the vehicle as property to which section 280F(a) does not apply. The applicable taxable years for this purpose are the taxable year in which the vehicle was placed in service by the taxpayer (or, if the period of limitation for assessment under section 6501 has expired for such year or any subsequent year (a closed year), the first taxable year following the most recent closed year) and all subsequent taxable years in which the vehicle was treated on the taxpayer’s return as property to which section 280F(a) applies. If the earliest applicable taxable year is not the year in which the vehicle was placed in service, the adjusted depreciable basis of the property as of the beginning of the first applicable taxable year is recovered over the remaining recovery period. If the remaining recovery period as of the beginning of the first applicable taxable year is less than 12 months, the entire adjusted depreciable basis of the property as of the beginning of the first applicable taxable year is recovered in that year.

(iv) A pre-effective date vehicle will be treated, to the extent provided in this paragraph (f)(2)(iv), as property to which section 280F(a) does not apply if the taxpayer adopts that treatment on Form 3115, Application for Change in Accounting Method, in accordance with this paragraph (f)(2)(iv). The taxpayer must follow the applicable administrative procedures issued under §1.446–1(e)(3)(ii) for obtaining the Commissioner’s automatic

July 12, 2004 27 2004–28 I.R.B.