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Barn using the midquarter convention, the 150-percent declining
balance method, and a 10-year recovery period. In the notice of
deficiency, respondent determined that the $16,730 cost consisted
of the cost of two separate assets: (1) The Tobacco Barn, and (2)
a concrete septic tank.3 Respondent determined that the Tobacco
Barn was not entitled to section 179 treatment and that the
applicable recovery for the Tobacco Barn is 20 years.
OPINION
Issue 1. Deduction Under Section 179
Section 179(a) allows a taxpayer to deduct, rather than
capitalize, the cost of certain property up to specified dollar
limits as specified in section 179(b). The deduction is
allowable for the entire cost or a portion of the cost of the
property. See sec. 1.179-1(b), Income Tax Regs. As pertinent
here, section 179 property is any tangible property that is
section 1245 property as defined in section 1245(a)(3). See sec.
179(d)(1). Section 1245 property is defined, by section
1245(a)(3) as, inter alia:
(A) personal property,
(B) other property (not including a building or its
structural components) but only if such other property is
tangible and * * *
3 As previously mentioned, petitioners have conceded the
adjustment regarding the concrete septic tank.
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