- 54 -
the report relating to the Small Business Job Protection Act of
1996, Pub. L. 104-188, 110 Stat. 1755,39 wherein the Senate
Finance Committee, in explaining present law relating to
depreciation of leasehold improvements, states as follows:
If the improvement is characterized as tangible
personal property, ACRS depreciation is calculated using the
shorter recovery periods and accelerated methods applicable
to such property. The determination of whether certain
improvements are characterized as tangible personal property
or as nonresidential real property often depends on whether
or not the improvements constitute a "structural component"
of a building (as defined by Treas. Reg. sec. 1.48-1(e)(1)).
See, for example, Metro Natl. Corp. [v. Commissioner], 52
TCM 1440 (1987) [T.C. Memo. 1987-38]; King Radio Corp. [v.
United States], 486 F.2d 1091 (10th Cir. 1973);
Mallinckrodt, Inc. [v. Commissioner], 778 F.2d 402 (8th Cir.
1985) [affg. per curiam T.C. Memo. 1984-532] (with respect
various leasehold improvements). [S. Rept. 104-281, at 16
n.5 (1996).]
We additionally note that for purposes of ascertaining ACRS
recovery periods section 1245 class property has the same
definition as personal property described in section 1.48-1(c),
Income Tax Regs., which comports with respondent's own
interpretation of section 168(f) promulgated in proposed
regulations under section 168 issued during 1984.40 See 49 Fed.
39 We recognize that it is well settled that the view of a
later Congress as to the construction of a statute or a
regulation adopted is not entitled to great weight. E.g., CSI
Hydrostatic Testers, Inc. v. Commissioner, 103 T.C. 398, 415
(1994), affd. 62 F.3d 136 (5th Cir. 1995); Mars, Inc. v.
Commissioner, 88 T.C. 428, 435 (1987).
40 The proposed regulations have not been amended to reflect
changes to sec. 168 made by the TRA-1986 and subsequent
legislation. No final or temporary regulations under sec. 168
relating to the issues in the instant opinion have been issued.
(continued...)
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