Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 69-81

1969-1 C.B. 137

Sec. 162
Sec. 446
Sec. 461

IRS Headnote

An accrual method industrial laundry renting out gloves, towels, shirts, and other items with a useful life of one year or less may charge such items to expense when they are placed in service.

Full Text

Rev. Rul. 69-81

An industrial laundry using the accrual method of accounting is engaged in the rental service of shop towels, garments, gloves, linens and business shirts that have a useful life to the taxpayer of one year or less. The company maintains a supply of these items and puts them in service only as actually needed in the business. The company charges these items to expense when they are placed in service.

Held, the taxpayer's treatment of such items is an acceptable method of accounting for Federal income tax purposes.