Reg. § 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 , for all of its section rental agreements described in of this section. A change to the constant rental accrual method is a change in method of accounting to which the provisions of sections and 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 ) except, for purposes of this , the scope limitations in 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 rental agreements described in of this section.
(b) Agreements to which automatic consent applies A section rental agreement is described in this if—
(1) The property subject to the section rental agreement is financed with an “exempt facility bond” within the meaning of section ;
(2) The facility subject to the section rental agreement is described in section , (2), (3), or (12);
(3) The section rental agreement does not include a specific allocation of fixed rent within the meaning of ; and
(4) The section rental agreement was entered into on or before May 18, 1999.
[T.D. 8820, 64 FR 26875, May 18, 1999]