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structural components of nonresidential real property, as
respondent contends they do.
The Meaning of Section 1245 Class Property Under ACRS and MACRS.
Respondent does not dispute for purposes of the instant case
that petitioners' business is described in Asset Guideline Class
57.0 (Class 57.0). Rev. Proc. 83-35, 1983-1 C.B. at 762, and
Rev. Proc. 87-56, 1987-2 C.B. at 686, describe Class 57.0 as
follows: "Distributive Trades and Services: Includes assets used
in wholesale and retail trade, and personal and professional
services. Includes section 1245 assets used in marketing
petroleum and petroleum products". Both revenue procedures
prescribe a 9-year class life for assets in Class 57.0. Rev.
Proc. 83-85, supra; Rev. Proc. 87-56, supra. ACRS and MACRS both
provide that property with a 9-year class life is depreciable
over a 5-year period. Sec. 168(c)(2)(B) (1985 and 1986); sec.
168(c), (e)(1) (1986 and 1987). Consequently, unless the
disputed property items constitute section 1250 class property,
they are depreciable over 5-year periods because petitioners'
businesses fall within the category "personal and professional
services".
Petitioners contend that the disputed property items
constitute section 1245 class property pursuant to the Code,
relevant legislative history, relevant income tax regulations,
respondent's long-standing rulings, and prior decisions of this
Court and, therefore, are properly depreciable over 5-year
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