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Section 167(a) permits a depreciation deduction for, inter
alia, property used in a trade or business. Pursuant to section
168(a), the depreciation deduction for any tangible property
generally is to be determined by using the applicable deprecia-
tion method, the applicable convention, and the applicable
recovery period. The parties’ dispute here is over the applica-
ble recovery period for the aircraft parts in question.
For purposes of section 168, the applicable recovery period
in the case of 3-year property is 3 years, and the applicable
recovery period in the case of 5-year property is 5 years. See
sec. 168(c). Section 168(e)(1) classifies property as (1) 3-year
property if such property has a class life of 4 years or less and
(2) as 5-year property if such property has a class life of more
than 4 years but less than 10 years.
As pertinent here, the term “class life” is defined by
section 168(i)(1), to mean, in general, the class life, if any,
which would be applicable with respect to any property as of
January 1, 1986, under section 167(m) (determined without regard
to section 167(m)(4) and as if the taxpayer had made an election
under section 167(m)), as in effect on the day prior to the date
of the enactment of the Omnibus Budget Reconciliation Act of
year to acquire various aircraft parts. On brief, petitioners do
not advance that argument. We therefore presume that petitioners
have abandoned their position at trial under sec. 165. See Rybak
v. Commissioner, 91 T.C. 524, 566 n.19 (1988).
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Last modified: May 25, 2011