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Respondent contends alternatively that all of the disputed
property items are structural components under an ITC analysis
and, consequently, constitute section 1250 class property. We
now address that alternative position.
Classification of the Disputed Property Items as Section 1245
Class Property or Section 1250 Class Property.
In General
As discussed supra, the classification of disputed property
items as section 1245 class property, depreciable over a 5-year
recovery period, or section 1250 class property, depreciable over
the life of the related structure, depends upon a decision as to
whether the respective items constitute tangible personal
property within the meaning of section 1.48-1(c), Income Tax
Regs., which would be section 1245 class property, or structural
components of the buildings to which they relate within the
meaning of section 1.48-1(e)(2), Income Tax Regs., which would be
section 1250 class property. See also secs. 1.1245-3(b)(1), (c),
1.1250-1(e)(3), Income Tax Regs.
Tangible Personal Property
The regulations define tangible personal property to include
"any tangible property except land and improvements thereto, such
as buildings or other inherently permanent structures (including
items which are structural components of such buildings or
structures)". Sec. 1.48-1(c), Income Tax Regs. Local law does
not control for purposes of determining whether property is or is
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