4426 Federal Register / Vol. 63, No. 19 /Thursday, January 29, 1998 / Proposed Rules

(f) * * *

(2) * * *

(iv) Partner’s share of partnership

basis—(A) In general. For purposes of

this paragraph (f), a partner’s

proportionate share of the partnership’s

basis in depreciable property (or

depreciable real property) is equal to the

sum of—

(1) The partner’s section 743(b) basis

adjustments to items of partnership

depreciable property (or depreciable

real property); and

(2) The common basis depreciation

deductions (but not including remedial

allocations of depreciation deductions

under § 1.704–3(d)) that, under the

terms of the partnership agreement, are

reasonably expected to be allocated to

the partner over the property’s

remaining useful life. The assumptions

made by a partnership in determining

the reasonably expected allocation of

depreciation deductions must be

consistent for each partner. For

example, a partnership may not treat the

same depreciation deductions as being

reasonably expected by more than one

partner.

(B) Effective date. This paragraph

(f)(2)(iv) applies to elections made

under sections 108(b)(5) and 108(c) on

or after the date the regulations are

published as final regulations in the

Federal Register.

(v) Treatment of basis reduction—(A)

Basis adjustment. The amount of the

reduction to the basis of depreciable

partnership property constitutes an

adjustment to the basis of partnership

property with respect to the partner

only. No adjustment is made to the

common basis of partnership property.

Thus, for purposes of income,

deduction, gain, loss, and distribution,

the partner will have a special basis for

those partnership properties the bases of

which are adjusted under section 1017

and this section.

(B) Recovery of adjustments to basis

of partnership property. Adjustments to

the basis of partnership property under

this section are recovered in the manner

described in § 1.743–1.

(C) Effect of basis reduction.

Adjustments to the basis of partnership

property under this section are treated

in the same manner and have the same

effect as an adjustment to the basis of

partnership property under section 743,

provided, however, that the election in

§ 1.743–1(j)(4)(ii)(A)(2) is not available.

The following example illustrates this

paragraph (f)(2)(v):

Example. (i) A, B, and C are equal partners

in partnership PRS, which owns (among

other things) Asset 1, an item of depreciable

property with a basis of $30,000. A’s basis in

its partnership interest is $20,000. Under the

terms of the partnership agreement, A’s share

of the depreciation deductions from Asset 1

over its remaining useful life will be $10,000.

Under section 1017, A requests, and PRS

agrees to decrease the basis of Asset 1 with

respect to A by $10,000.

(ii) In the year following the reduction of

basis under section 1017, PRS amends its

partnership agreement to provide that items

of depreciation and loss from Asset 1 will be

allocated equally between B and C. In that

year, A’s distributive share of the

partnership’s common basis depreciation

deductions from Asset 1 is now $0. Under

§ 1.743–1(j)(4)(ii)(B), the amount of the

section 1017 basis adjustment that A recovers

during the year is $1,000. A will report

$1,000 of ordinary income because A’s

distributive share of the partnership’s

common basis depreciation deductions from

Asset 1 ($0) is insufficient to offset the

amount of the section 1017 basis adjustment

recovered by A during the year ($1,000).

(iii) In the following year, PRS sells Asset

1 for $15,000 and recognizes a $12,000 loss.

This loss is allocated equally between B and

C, and A’s share of the loss is $0. Upon the

sale of Asset 1, A recovers its entire

remaining section 1017 basis adjustment

($9,000). A will report $9,000 of ordinary

income.

(D) Effective date. This paragraph

(f)(2)(v) applies to elections made under

sections 108(b)(5) and 108(c) on or after

the date the regulations are published as

final regulations in the Federal Register.

* * * * *

Michael P. Dolan,

Deputy Commissioner of Internal Revenue.

[FR Doc. 98–1949 Filed 1–28–98; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF LABOR

Occupational Safety and Health

Administration

29 CFR Part 1915

Fire Protection for Shipyard

Employment Negotiated Rulemaking

Advisory Committee; Notice of Meeting

AGENCY: Occupational Safety and Health

Administration (OSHA), Labor.

ACTION: Fire protection for shipyard

employment negotiated rulemaking

advisory committee; notice of open

meeting.

SUMMARY: The Occupational Safety and

Health Administration announces a

meeting of the Negotiated Rulemaking

Advisory Committee for Fire Protection

for Shipyard Employment. OSHA

invites all interested persons to attend.

The committee members represent

groups interested in, or significantly

affected by, the outcome of the

rulemaking: They come from shipyards,

labor unions, professional associations,

and government agencies. The

committee will continue its discussions

on scope and application,

administrative, engineering, and work

practice controls, fire brigades, written

fire plans, technological advances, costs

of fire protection, and the content of

appendices for a proposed standard to

protect workers from hazards in

shipyard employment. The committee’s

goal is to recommend to the Assistant

Secretary a safety standard and

explanatory preamble that the members

support.

DATES: The meeting dates are Tuesday,

February 24, 1998, through Thursday,

February 26, 1998, from 9:00 a.m. to

about 5:00 p.m. daily. Submit

comments, requests for oral

presentation, and requests for disability

accommodations by February 10, 1998.

ADDRESSES: The meeting will be held at

the Holiday Inn on the Bay, 1355 North

Harbor Drive at the Embarcadero, San

Diego, CA, 92101; telephone 619–232–

3861. Mail comments and requests for

oral presentations to Ms. Odet Shaw,

U.S. Dapartment of Labor, OSHA Office

of Maritime Standards, 200 Constitution

Avenue, NW, Room N–3647,

Washington, D.C. 20210.

FOR FURTHER INFORMATION CONTACT: Mr.

Joseph V. Daddura, Project Officer,

Office of Maritime Standards, OSHA

(202–219–7234 ext. 123). For disability

accommodations, contact Ms. Theda

Kenney (202–219–8061 ext. 100; FAX:

202–219–7477).

SUPPLEMENTARY INFORMATION:

Meeting Agenda. The Committee will

focus its discussions on fire brigades

and current rules.

Public Participation. Interested

persons may send written comments,

data, views, or statements for

consideration by the Fire Protection for

Shipyard Employment Negotiated

Rulemaking Committee to Ms. Odet

Shaw. Interested persons may also

submit requests for presentations by

providing to Ms. Shaw a summary of the

proposed presentation, an estimate of

the time desired, and a statement of the

interest that the person represents.

Authority. This notice is issued under the

authority of Section 3 of the Negotiated

Rulemaking Act of 1990 (104 Stat. 4969; Title

5 U.S.C. 561 et seq.) and Section 7(b) of the

Occupational Safety and Health Act of 1970

(84 Stat. 1597; Title 29 U.S.C. 656).

Signed at Washington, D.C., this 23rd day

of January, 1998.

Charles N. Jeffress,

Assistant Secretary of Labor.

[FR Doc. 98–2097 Filed 1–28–98; 8:45 am]

BILLING CODE 4510–26–M