[Code of Federal Regulations]
[Title 26, Volume 6]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.467-8]

[Page 297-298]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
DEFERRED COMPENSATION, ETC.--Table of Contents
 
Sec. 1.467-8  Automatic consent to change to constant rental accrual for certain rental agreements.

    (a) General rule. For the first taxable year ending after May 18, 
1999, a taxpayer may change to the constant rental accrual method, as 
described in Sec. 1.467-3, for all of its section 467 rental agreements 
described in paragraph (b) of this section. A change to the constant 
rental accrual method is a change in method of accounting to which the 
provisions of sections 446 and 481 and the regulations thereunder apply. 
A taxpayer changing its method of accounting in accordance with this 
section must follow the automatic change in accounting method provisions 
of Rev. Proc. 98-60 (see Sec. 601.601(d)(2) of this chapter) except, for 
purposes of this paragraph (a), the scope limitations in section 4.02 of 
Rev. Proc. 98-60 are not applicable. Taxpayers changing their method of 
accounting in accordance with this section must do so for all of their 
section 467 rental agreements described in paragraph (b) of this 
section.
    (b) Agreements to which automatic consent applies. A section 467 
rental agreement is described in this paragraph (b) if--
    (1) The property subject to the section 467 rental agreement is 
financed with an ``exempt facility bond'' within the meaning of section 
142;
    (2) The facility subject to the section 467 rental agreement is 
described in section 142(a)(1), (2), (3), or (12);
    (3) The section 467 rental agreement does not include a specific 
allocation of fixed rent within the meaning of Sec. 1.467-
1(c)(2)(ii)(A)(2); and

[[Page 298]]

    (4) The section 467 rental agreement was entered into on or before 
May 18, 1999.

[T.D. 8820, 64 FR 26875, May 18, 1999]