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MACRS
MACRS does not utilize the terms "section 1245 class
property" or "section 1250 class property".41 Rather, MACRS
assigns property to recovery periods on the basis of class lives.
To constitute 5-year property, the disputed property items must
have a class life of more than 4 years but less than 10 years.
Sec. 168(e)(1). To constitute nonresidential real property, the
disputed property items must be section 1250 property with a
class life of more than 27.5 years. Sec. 168(e)(2).
Section 168(i)(12) provides that "The terms 'section 1245
property' and 'section 1250 property' have the meanings given
such terms by sections 1245(a)(3) and 1250(c), respectively." As
we discussed supra, section 1250(c) excludes from the term
"section 1250 property", "section 1245 property, as defined in
section 1245(a)(3)".
From that statutory provision, we conclude that, as with
ACRS, the MACRS statutory language manifests a congressional
intent to retain the prior law distinction between components
41 Although the terms "section 1245 class property" and
"section 1250 class property" are not utilized in MACRS, as will
be discussed in more detail infra, the disputed property items
involved in the instant case for taxable years ended 1986 and
1987 would have constituted either section 1245 class property or
section 1250 class property, as applicable, had ACRS continued to
be in effect for those taxable years. Consequently, for
convenience, we continue to use the terms "section 1245 class
property" and "section 1250 class property", where appropriate,
to refer to property items for which MACRS applies as well as to
the property items for which ACRS applies.
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