- 55 -
Reg. 5940-5971 (Feb. 16, 1984). Section 1.168-2(e), Proposed
Income Tax Regs., 49 Fed. Reg. 5946 (Feb. 16, 1984), provides in
pertinent part as follows "((e) Components and improvements--(1)
Component cost recovery not permitted. In general, the
unadjusted basis of structural components (as defined in � 1.48-
1(e)(2)) of a building must be recovered as a whole. Thus, the
same recovery period and method must be used for all structural
components, and such components must be recovered as constituent
parts of the building of which they are a part. * * *"
[Emphasis added.])
Accordingly, we conclude that the precedent that has been
developed to ascertain whether property constitutes eligible
section 38 property for purposes of ITC is equally applicable to
ascertain whether property constitutes section 1245 class
property for purposes of ACRS. See also Schrum v. Commissioner,
T.C. Memo. 1993-124 (to the extent that property does not qualify
as eligible section 38 property under section 48, the property
cannot constitute section 1245 class property.)
40 (...continued)
We recognize that the proposed regulations "carry no more weight
than a position advanced on brief by the respondent". Zinniel v.
Commissioner, 89 T.C. 357, 369 (1987), quoting F.W. Woolworth Co.
v. Commissioner, 54 T.C. 1233, 1265-1266 (1970).
Page: Previous 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 NextLast modified: May 25, 2011