- 37 -
years or less, and (ii) is not low-income housing." Sec.
168(c)(2)(D).
The present class life of a property item is "the class life
(if any) which would be applicable with respect to any property
as of January 1, 1981, under subsection (m) of section 167
(determined without regard to paragraph (4) thereof and as if the
taxpayer had made an election under such subsection)."23 Sec.
168(g)(2). Additionally, respondent may prescribe a present
class life that reasonably reflects the anticipated useful life
of the property for any property that did not have a present
class life as of January 1, 1981. Sec. 168(g)(2). Class life
refers to the class life of property assigned by respondent that
reasonably reflects the anticipated useful life of that class of
property to a particular industry or other group. Sec. 167(m);
23 Sec. 167(m) was repealed as an obsolete provision by the
Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, sec.
11812, 104 Stat. 1389-534. Prior to its repeal, sec. 167(m)
provided as follows:
SEC. 167(m) Class Lives.--
(1) In General.--In the case of a taxpayer who has
made an election under this subsection for the taxable year,
the term "reasonable allowance" as used in subsection (a)
means (with respect to property which is placed in service
during the taxable year and which is included in any class
for which a class life has been prescribed) only an
allowance based on the class life prescribed by the
Secretary which reasonably reflects the anticipated useful
life of that class of property to the industry or other
group. The allowance so prescribed may (under regulations
prescribed by the Secretary) permit a variance from any
class life by not more than 20 percent (rounded to the
nearest half year) of such life.
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