IRS guidance · 2023
PLR 202317007
PLR 202317007 (Jan. 26, 2023; released Apr. 28, 2023), PLR-115133-22
IRS administrative guidance
What it holds
A partnership that renovated a building it owned, demolishing parts of the exterior walls, windows, doors, roof coverings, interior partitions and finishes, plumbing fixtures, sprinklers, lighting and branch wiring, and HVAC components, but did not make the partial disposition election on its timely return, was granted 9100 relief under Treas. Reg. §§301.9100-1 and 301.9100-3: 60 days to make the election under Treas. Reg. §1.168(i)-8(d)(2) on an amended return for that year, with the ruling attached.
Why it matters for your study: When a study finds building components retired in a renovation year whose return missed the partial disposition election, a 9100 ruling request is a real path to deduct their remaining basis. The ruling expressed no opinion on the basis amounts, methods or eligibility. Not precedent (IRC §6110(k)(3)); it shows the IRS grants this relief when the taxpayer relied on its adviser and the statute of limitations is open.
- Category
- Tangible property regs
- Applies to
- All property types
- Status
- Vetted
This page explains a tax authority in plain words. It is not tax advice for your situation. Joel Salas, our Director of Tax, signs every study. Citation is provided so you or your advisor can read the primary source.